U.S. economy is starting to look kind of, sort of normal. But the housing market is still a mess

The average rate on 30-year mortgage, at 6.6% is about 3 percentage points higher than before the pandemic. 

Prices are much higher too, the median existing single-family home sold in December fetched $387,000, versus $277,000 in December 2019.

Put the two together and affordability is far worse than before.

With so many homeowners locking in low rates before and during the early part of the pandemic, they are loath to move and sell. Friday’s report showed the fewest existing homes were sold last year since 1995.

There is no quick solution here. 

Perversely, housing looks as if it could boost economic growth this year.

Construction was started on a seasonally adjusted 1.09 million homes in the fourth quarter—the most since the second quarter of 2022.

WSJ 19 January 2024

https://www.wsj.com/economy/housing/the-economy-is-starting-to-look-normalhousing-isnt-66266f5d

US homeowners now pay around 7 percent on their new 30-year mortgages

Many have loans far less cheaper. Good for them. 

On the other  hand, as economists like to say, if inflation returns to 2 percent, the real rate on new loans will be 5 percent for many years.

Englund blogg 16 augusti 2023

 

https://englundmacro.blogspot.com/2023/08/us-homeowners-now-pay-around-7-percent.html