While the inflation rate is down compared to recent highs, persistent inflation is continuing to impact many people’s wallets, as the cost of everything from gas and food to housing has increased substantially over the last couple of years. To combat it, the Federal Reserve has kept its benchmark rate paused at a 23-year high.
As a result, today’s mortgage rates are much higher than they were in 2020 and 2021 during the height of the pandemic. This has led to many existing homeowners remaining in their homes to keep their sub-3% mortgage rates rather than moving and buying a home at a higher rate. Despite this, housing inventory grew by 1.21 million units in April, according to data from the National Association of Realtors. However, inventory is still lower than it was before the COVID-19 pandemic.
But could a drop in mortgage rates encourage existing homeowners and further increase housing inventory?
”The days of below 5% mortgage rates are over. And if homeowners come to this same conclusion, that will likely open up the inventory floodgates.
Richard RossCEO of Quinn Residences
Read the article featuring Quinn Residences that focuses on recent rises in inflation–from food and gas to mortgage rates–and the impact the rise in these rates has had on the current real estate market in CBS MoneyWatch.
