High mortgage rates and elevated home prices will keep the U.S. residential housing market subdued this year and next, thwarting administration goals to revive the sector. The average purchase mortgage is around $460,000, costing nearly $3,000 per month and consuming over 50% of the median after-tax pay.
Key Market Poll Insights:
- Turnover & Prices: Market turnover is expected to remain constrained with only very modest price increases as affordability issues plague most regions.
- The “Lock-In” Effect: Many homeowners are unwilling to sell and trade their older, ultra-low (e.g., 3%) mortgage rates for current borrowing costs hovering between 6% and 6.5%.
- Analyst Consensus: Economists at TradingView warn that current levels make it increasingly challenging for typical Americans to break into the housing ladder, causing the market to remain fairly depressed.
If you’d like, let me know:
- Are you planning to buy or sell a home in the near future?
- Which region or state are you tracking for housing?
