https://www.npr.org/2024/01/19/1225629146/2023-home-buying-mortgage-rates-worst-year Last year was rough for homebuyers and realtors as a trifecta of forces made it harder than ever to buy a place to live. Or, at least the hardest in nearly three decades.
Mortgage rates neared 8%. Home sellers tend to lower their prices when rates are high. But the nation has been in the midst of a severe housing shortage, so without enough homes to meet demand, prices just kept rising.
"We've actually seen home prices continue to rise for six consecutive months," said Jessica Lautz an economist with the National Association of Realtors. The group reported on Friday that the median home price in 2023 was $389,800 — a record high. Meanwhile, the number of homes sold fell to the lowest level since 1995.
"The jump in interest rates that we saw last year really was a shock to the system," said Lautz.
It's not just that higher mortgage rates made it nearly twice as expensive to buy the same-priced home as a couple of years before. The higher rates also affected the supply of homes on the market. Lautz says people who already have a home and a low 2% or 3% mortgage rate are less likely to put their house up for sale, because to buy another one they'd get stuck with a much higher rate.
It was more difficult to buy new homes too.
"Home builders are being impacted by the jump in interest rates as well," says Lautz. "They have to borrow to build and it's become very expensive for them to do."
Outdated zoning rules are a big factor in the tight housing supply because they often limit construction of smaller homes packed more tightly together — exactly the dense type of housing that is more affordable to build and buy. Overly restrictive zoning, "has restricted private developers from building enough housing to keep up with demand," Tobias Wolf of the American Enterprise Institute testified before Congress this week.
Anonymous
Quoted By:
Wait, there's hope for home buyers in 2024 But while all that sounds pretty dismal for anyone wanting to buy a home, realtors sense that things are about to improve for buyers. "Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months," said NAR Chief Economist Lawrence Yun. Rates for 30-year fixed-rate mortgages continued to fall over the past week to 6.6% according to the mortgage industry giant Freddie Mac's weekly rate tracker. And that is making realtors feel better about the months ahead. "We're at a very interesting moment in the real estate market," said Lautz. The group does a monthly confidence survey of it's members. "We're actually seeing the optimism grow." She says it's important to remember that people who just bought houses last month locked in their mortgage rates two or three months ago when rates were much higher. But she says her group is hearing from realtors that they're already seeing more interest from homebuyers.
Anonymous
Quoted By:
Thanks for nothing, biden
Anonymous
>>1259208 >Thank the Socialist Leftist Biden for Terrible Housing Market in 2023 How so? Give us your expert analysis of what policies socialist Biden implemented and specifically how they impacted the housing market. Get as granular as you want. I'm genuinely curious.
i studied at the /pol/ school of ekonomecs
i studied at the /pol/ school of ekonomecs Sun 21 Jan 2024 23:04:39 No. 1259220 Report >>1259217 >Give us your expert analysis ok kommie:
Biden big gov.
GOP little gov.
Me want invest $ in build house and Big gov. take my tax so no invest.
GOP no take tax so invest build house.
Hulk smash socialists
Anonymous
>>1259208 >>1259220 >thinks Joe Biden is responsible for the 15 year old housing bubble I haven't seen a case of BDS this bad since
>>1259144 Anonymous
>>1259230 Bidenflation means higher rates on home loans. Democrats voted to be impoverished and homeless.
Anonymous
Quoted By:
>>1259232 That isn't how you spell Trumpflation left over from the Trump Virus and Trump's stimulus checks
Anonymous
>>1259232 Biden kept raising the interest rate.
Didn't care about the unemployment he was creating, as long as the stocks prices for the rich were doing well.
Biden is not a socialist.
Anonymous
Quoted By:
>>1259236 I guess you think Trump's bailout of Big Pharma called "Operation Warp Speed" paid for itself by trickling down? Where do you think all that money came from?
Anonymous
>>1259236 >Biden kept raising the interest rate. Biden is the Fed Chairman now?
>Didn't care about the unemployment he was creating, That's right he LAUGHED and SCOFFED at the millions of new homeless people while wiping his ass with tax money $100s. You people are a parody of yourselves.
Anonymous
>>1259220 >GOP little gov. Unless it's social issues that the christian right want full control over.
Oops, can't get that health care now because it offends them!
Anonymous
>>1259249 >Oops, can't get that health care now because it offends them! Nah, buy whatever healthcare you want with your money. No one will be offended.
Anonymous
>>1259263 >Nah, buy whatever healthcare you want with your money. No one will be offended. Apparently evangelical conservatives didn't get this message. They're very offended. So offended they're trying to get certain kinds of healthcare banned for adults because it hurts their feelings.
i'm a foreener who thinks i know about usa
i'm a foreener who thinks i know about usa Mon 22 Jan 2024 03:22:30 No. 1259272 Report Quoted By:
>>1259238 >Biden is the Fed Chairman now I didn't know Jerome Powell was POTUS.
By law, the chairman reports twice a year to Congress on the Federal Reserve's monetary policy objectives. He or she also testifies before Congress on numerous other financial issues and meets periodically with the treasury secretary, who is a member of the president's Cabinet.
Anonymous
Quoted By:
>>1259267 >buy whatever healthcare you want with your money. No one will be offended. >Apparently evangelical conservatives didn't get this message. They're very offended. So offended they're trying to get certain kinds of healthcare banned for adults because it hurts their feelings. burned baby burned!
Anonymous
>>1259267 >So offended they're trying to get certain kinds of healthcare banned for adults because it hurts their feelings. Genital mutilation isn't healthcare, trannyfag.
i got trannys on the brain, they have COCKS
i got trannys on the brain, they have COCKS Mon 22 Jan 2024 03:40:41 No. 1259280 Report >>1259278 The anon meant abortion, you 1/2 wit(find another 1/2 wit and together you be a whole wit)
Anonymous
>>1259278 >I'm not trying to ban healthcare for adults, I'm just trying to make sure that I, a person with zero medical experience or training, gets to determine what is and isn't healthcare! Wow good one
Anonymous
Quoted By:
>>1259280 Abortion isn't healthcare either, tranny.
Anonymous
Quoted By:
>>1259295 Why do you want to hurt yourself?
Anonymous
Quoted By:
>>1259249 Republicans were the retarded buttclinchers the entire time.
>just took the latest decade of chimpouts to prove the point >they were never the strongmen they wanted you to believe they were >they were always pearl-clutching retards Anonymous
>>1259249 They just want a government small enough to fit up a woman's vagina.
Anonymous
>>1259324 Well, that would be better than taking a huge government in the ass.
Anonymous
>>1259326 You anti-government niggers always turn out to be teenagers, commies, edgelords - or worse: Actual niggers.
Anonymous
Quoted By:
>>1259331 Uh, the teenage edgelord commie zeitgeist loves the government.
So I'm not sure why you'd think this.
But now I'm concerned about how many anonymous message board posters you've stalked to come up with this weird conclusion.
Anonymous
Quoted By:
>>1259236 republitards think Biden is a socialist? HAHAHAHAHAHAHAHAHAHAHA
stop making Biden looks cool when he's a senile turd sandwich, retards
Anonymous
Quoted By:
>>1259331 >commies >anti-government Someone hasn't read the kommunist manifesto.