Home-buying is not a snap decision -- people mentally prepare for it and search for homes, and this is a three-to-four-month process. Plus, even with the rise in mortgage rates, they're still below last year's figure and still close to 45-year lows.
"Lawrence Yun" is a Chief Economist and Senior Vice President of Research at the National Association of Realtors. He oversees the production of existing home sales statistics and the popular Home Buyer and Home Seller survey reports. He regularly appears on CNBC, BBC, Bloomberg Television, and is often quoted in the media. Yun is also a frequent speaker at Real Estate conferences throughout the United States. In March 2008, USA Today listed him among the top 10 economic forecasters in the country. At the time, when most economists were calling for another major declines in the housing market, Yun predicted that the housing market could stabilize with home buyer tax credit. Four years later, that rebound has yet to materialize according to some analysts, though actual data show home sales, housing starts, and Case-Shiller home prices either showing modest increases from 2009 or showing essentially no meaningful change.
More Lawrence Yun on Wikipedia.The supply of homes is very tight for new and existing homes. We will continue to see healthy home-price appreciation. For non-home owners, that's bad news. But for home owners, that's building wealth.
Obviously, many renters have become homeowners as rates have fallen.
The housing market just refuses to stop.
The strong rise in prices cut into affordability, even with the low rates.
A typical household in the past two years saw about a $20,000 gain in equity. That's not an insignificant chunk. Homeowners see that wealth and use it to buy additional goods.
A cut...won't affect the 30-year fixed mortgage rate at all. According to Freddie Mac, the 30-year fixed rate was 6.8 percent last week, and we think it'll stay about the same. But another interest rate cut could mean a slight drop in the short-term one-year adjustable rate mortgage (ARM).
You need a strong job market with people in their 20s moving out of their parents' homes before rents recover.
People are moving out of these regions to the South and the West. They're putting more supply on the market at the same time there is less demand.
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