3 Housing Market Updates Affecting Your Buying Power

New Construction

New Construction housing decreased its 2023 projected new units considerably, likely leading towards more inventory shortage whoas for the foreseeable future. Housing supply is and will likely remain a challenge for some time as labor and material shortages, as well as general supply chain issues, delay new construction.

Mortgage Rates

Mortgage rates dropped for three key terms this week, giving buyers an opportunity to save on interest. For the time being interest rates seem to have stabilized in the 5%-5.5% range. But with rate fluctuations continuing, buyers may want to act now and lock in a lower rate before they go up again.

Federal Reserve

The Federal Reserve is scheduled to aggressively taper its mortgage backed securities (mortgage bonds) buy back program (it is no longer going to be purchasing them is such large volume) the impact on the real estate market and mortgage rates is unknown but it is something to keep a close eye on.