Mortgage rates could move below 6% by December: Economist

New home sales for the month of May fell over 11%, against an expected -0.2%, according to the US Census Bureau. A higher inventory of homes sitting on the market and higher mortgage rates are putting pressure on the housing market as a whole.

KPMG senior economist Yelena Maleyev joins Wealth! to give insight into the current housing market landscape and how it may evolve moving forward.
Maleyev claims that it will be a while before the sector sees relief, only estimating one interest rate cut by December: "We've pushed that forecast out into December, so we do expect one rate cut in December, which will help bring overall mortgage rates to perhaps around 6.5 by the end of the year. That's probably not what people who are waiting for those 3% mortgage rates are wanting to hear, but unfortunately, those days are behind us. "

About Yahoo Finance:

Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.

- Follow Yahoo Finance on social:

#mortgagerates #yahoofinance #housing

[AgustínAndrés-sr]

These are fantastic takes, I was really hopeful of my investments this year, but I followed some stock suggestions that didn't go so well, I've been studying the market crashes and I realized some investors made millions from the recent recession and I was wondering if such success rate could be achieved in this present market. Any recommendations?

[C--Hercules]

The fix is in. Do you know what I'm talking about? The algorithm won't let me use as many words as I'd like to describe this to you. Do you know the federal government is in severe debt? Do you know they want to transfer that debt onto your house. They are going to put more cash in the system by lowering interest rates whereby people will re-finance their house and they will also have home-equity lines of credit. They want the homeowner to transfer the simple interest debt onto their homes. The government wants to take your home equity and put it towards their debt. Because when you open a home equity line of credit you create that much capital. Every person who applies for a loan creates that much capital in the system. Every time you buy a vehicle you create that much capital. Fractional reserve except now the reserve is zero. In fact it's less than zero they need your home equity to keep the system afloat.

[kevinhobbs]

for every loser there is a people who already have a home are having a great time with 50% price increases. Zoning and "not in my back yard" are the cause of high prices (imbalance in supply and demand). Micro apartments (300-400 sqft) apartments would help low income and affordability.

[realharo]

The problem is the prices, not the rates.