The 30-year mortgage rate hit 7.1%

Highest level since November 2023  

Cash buyers, who are insensitive to rates, and hence can sustain price growth, such as repeat buyers with significant equity in their homes, or investors.

Cash buyers comprised 28% of all sales in March,

 MarketWatch April 18, 2024

The U.S. housing market in five charts

‘The U.S. housing market is on a different planet than the rest of the world,’ IMF director says

The housing market appears to be back at square one, with mortgage rates crossing above 7% again, and the lock-in effect still holding people back from selling their homes because they don’t want to give up their relatively lower, and highly prized, mortgage rates.

Against that backdrop and “with no sign that market conditions will change materially this year, sales of existing homes should remain depressed,” Ben Ayers, senior economist at Nationwide Economics, said in a statement.

The fact that higher mortgage rates haven’t pushed home prices down is hurting many would-be home buyers, particularly those who don’t currently own a home and hence can’t tap on that equity. 

Nearly 30% of homes sold in March were purchased by all-cash buyers.

Aarthi Swaminathan MarketWatch 19 April 2024

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



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