Written in mid-2020, this article explains that the COVID-19 pandemic prompted the Federal Reserve to cut interest rates, leading to historically low mortgage rates. This is expected to fuel a strong rebound in the housing market after a brief spring slump in sales volume. Despite the lockdown, home prices remained stable or even increased. The […]
Written in mid-2019, this article forecasts that the U.S. housing market, after years of rapid price growth, would begin to cool down heading into 2020. While strong fundamentals like low mortgage rates, low unemployment, and a wave of Millennial buyers were supporting the market, the primary challenge was a widespread affordability crisis in major cities.
Refinance (REFI) volume is down a sharp 39% year-over-year, primarily because rising interest rates (expected to exceed 5%) are eliminating the financial incentive for homeowners to refinance. The market is also saturated, as most homeowners already have loans with rates below 4%. Borrowers who need cash are now using second mortgages and HELOCs instead of
