Slow Housing Market Set to Continue

October 19, 2023

The tepid housing market in the United States that has heavily impacted the moving industry in the country looks set to continue into 2024, as high mortgage rates have brought home sales down to 2011 levels.
 
As the average rate on a 30-year fixed mortgage rose to 7.57% last week, The Wall Street Journal reported that sales are unlikely to recover much in the New Year. “We’re in for a fairly prolonged freeze,” said Chen Zhao at leading real-estate broker Redfin. Zhao estimated that total existing-home sales in 2023 may represent the lowest number since the global financial crisis in 2008 and that mortgage rates are likely to remain at elevated levels.
 
Housing inventory also remains low as owners who purchased or refinanced with low mortgage rates remain unwilling to move. In a September survey by Federal National Mortgage Association, only 16% of consumers said it was a good time to buy a home, matching the record low in data going back to mid-2010.