Homebuyers Battle the Trifecta: Rates, Inventory, and Prices

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Posted To: MND NewsWire

The May edition of Freddie Mac’s monthly Outlook , produced by its Economic & Housing Research Group, is focused on the resiliency of the American homebuyer . It notes that, “Through the first five months of 2018, home shoppers have battled the trifecta of climbing home prices, higher mortgage rates and low supply .” One entry in the trifecta is interest rates, and Freddie Mac’s economists see firming inflation continuing to put upward pressure on rates in general, including mortgage rates. They continued to climb during May, reaching 4.66 percent by the middle of the month. Rates, according to their forecast, will average 4.9 percent in the fourth quarter of this year and 5.4 percent by the same quarter in 2019. Higher mortgage rates have not yet slowed home purchase demand. Buyer resiliency…(read more)

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