“We expect ongoing hikes will be appropriate,” Powell told reporters Wednesday afternoon, later adding, “I don’t see us cutting rates this year.”
“We’re past the 3% era,” said Odeta Kushi, deputy chief economist at First American, which provides title insurance to real estate transactions. Existing home sales tumbled over the course of last year, from an annualized rate of 6.5 million homes in January 2022 to a little over 4 million in December — the slowest pace since 2010. And home priceslast November, the S&P CoreLogic Case-Shiller National Home Price Index showed this week, reflecting slower demand in a climate of pricier mortgages.
There are signs that the drop in home sales may have bottomed out, as the slight retreat from 7% mortgage rates lures some prospective homebuyers back into the market. Mortgage applications are up 28% from early November, and real estate company RedfinStill, Kushi points out that prices will have to be attractive for homebuyers to take on interest rates that remain elevated.
Effectively killing the housing demands
😢😢😢😢
That will stop them from refinancing out their higher rate home loans, cashing out to payoff debt & charging up again. We need them to stop spending. Hold out another quarter then ease us in to low 5's and stay there. Never go below 5's on home loans again. 💪🏼
So how is raising interest rates supposed to be a good thing?