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Mortgage rates are projected to decline, but will that entice buyers?

Housing Wire

While mortgage rates have been trending lower, rates are still higher than 12 months ago, but some experts anticipate that the downward pressure on rates will provide opportunities for buyers. The 30-year fixed rate was at 6.16% on Tuesday, a decline from 6.5% The 30-year fixed rate was at 6.16% on Tuesday, a decline from 6.5%

Buyers 393
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2023 Real Estate Forecast: Market to Regain Normalcy

Empire Appraisal Group

But even though mortgage rates and home prices are expected to moderate, home sales may still sag under persistent inventory shortages, housing economists predict. Next year, mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, according to NAR’s forecast.

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No sign of relief in housing even as the Fed holds rates steady 

Housing Wire

Real estate experts reiterated caution against further rate increases. While Fed Chair Jerome Powell emphasized incoming data will determine whether the central bank will raise its federal funds rate at its next FOMC meeting in November, the “dot-plot” of rate projections showed policymakers foresee one more hike by the year-end.

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Inventory needs to increase to balance housing market: Fed Beige Book

Housing Wire

High inflation has reduced consumers’ purchasing power, which has led to weakened sales and construction across all 12 Federal Reserve districts. While home prices have started to inch down, more inventory is needed for a balanced housing market, the Federal Reserve Beige Book said.

Inventory 414
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Unacceptable Appraisal Practices from Freddie Mac

Appraisal Today

12 Unacceptable Appraisal Practices from Freddie Mac. Here are 5: Reliance in any appraisal analysis on inappropriate comparable sales, or the failure to use comparable sales that are more similar to or nearer to the subject property without adequate explanation. Powerball Jackpot. Excerpt: 1. Excerpt: 1. Price: $225,000,000.

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Fed’s Beige Book predicts further uncertainty for the housing market  

Housing Wire

Interest rates and inflation continued to dampen activity in the housing market across all 12 Federal Reserve districts, according to the Fed’s latest Beige Book. Following dampened activity from buyers, sellers provided increased concessions, such as temporary rate buydowns or paying closing costs to complete sales, the report noted.

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Build-for-rent is a bet on the ‘new normal’ housing market

Housing Wire

One slice of the single-family home market that has gained traction over the past year in a topsy-turvy housing landscape is the build-for-rent sector — or BFR. The Northmarq report points out that the BFR sector currently accounts for only a small slice of overall home starts, at about 6%.