Home Prices Bombshell
Goodness gracious.
First American Financial Corporation chief economist Mark Fleming recently sat down with Fox’s Maria Bartiromo to discuss what he thinks will happen regarding the housing market and if cost of homes will decline in the near future.
According to Fox, Fleming talked about the soon-to-be expected rate hikes from the Federal Reserve as a way to calm inflation. He pointed out that the 30-year fixed-rate mortgage fell to around 5% annual percentage rate (APR) and claiming that it was a “big move.” He further explained that the number “should curtail demand and affordability in the housing market.”
“5% is still a pretty good mortgage rate,” Fleming stated.
He added, “And because there’s such a short supply of housing out there, even with the reduced demand due to the higher rates, it’s still imbalanced, so prices are not expected to decline.”
Fleming is essentially saying that while the demand for housing will go down because of higher rates it still won’t lower the cost of homes because the available supply of homes is still so scarce.
