An anomaly in the housing market
·1 min read
- Even with interest rates (6.25% - highest in 14 years) climbing and mortgage applications jumping 3.8% this month (first increase in six weeks), demand remains healthy although slower compared to same time last year
- Fannie Mae has just revised its market outlook for 2022 and 2023:
- Continued market cooling as interest rates increase through early 2023; expecting a federal funds rate of between 3.5% and 3.75% (currently 3.25%)
- Expects high home prices to keep the rental market strong through 2023
- Covid-19 has accelerated numerous trends including the real estate trend of homeowners relocating to more affordable cities. According to Redfin, these are the cities with highest outflow and inflow of residents:
- Outflow:
- San Francisco
- Los Angeles
- New York City
- Washington, DC
- Boston
- Inflow:
- Miami
- Sacramento
- San Diego
- Las Vegas
- Tampa
- Outflow: