If the Fed does not cut rates this year, the housing market will likely remain status quo: Gridlocked on the resale side and builders buying down rates allowing the new construction side to continue its outperformance.
The housing market is even more rate-sensitive now because many people are locked into low mortgage rates and because first-time buyers are really stretched by high prices and borrowing costs.
Mortgage rates crossed the 7% threshold in mid-April and jumped to an average 7.17% for 30-year, fixed-rate loans in the week ending April 25, according to the most recent Freddie Mac data.
If you've been waiting for the housing market to take off again, it might feel more like purgatory. It's going to be a meh year for the housing market...
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