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August 2023
F I N A L T H O U G H T S
"any decline is welcome"
Redfin Economic Research Lead Chen Zhao discusses how elevated mortgage rates are
responsible for major homebuying challenges like high monthly housing payments and low
inventory, and the likelihood of rates falling below 6%.
"daunting"
Jeff Tucker, Senior Economist at Zillow, details homebuyer persistence amid record-low
inventory and high mortgage rates and says that large price declines are unlikely until more
homeowners list their homes for sale.
"downside sticky"
Redfin Deputy Chief Economist Taylor Marr explains the method by which rents don't typically
fall much even when renter demand pulls back and how the steep slowdown in rent growth over
the last year is providing relief for some renters.
"respite for buyers"
Steve Kaminski, Head of U.S. Residential Lending for TD Bank, reveals that rate hikes may be
nearing their peak and how the competitive market and already high home prices may pose
headaches for many homebuyers looking to purchase a home.
"a cumulative increase"
Selma Hepp, Chief Economist for CoreLogic, talks about the effects of a near 4% increase in
home prices between February and April of 2023 and how elevated mortgage rates and high
home prices are putting pressure on potential homebuyers.
FINAL THOUGHTS
In this month's Final Thoughts, experts discuss homebuyer sentiment and
ongoing homebuying challenges, such as nationwide economic uncertainties
and potential rate hikes, amid record-low housing supply, surging demand, and
an increased cost of living.
