#mortgages #youtube #yahoofinance Zillow Senior Economist Orphe Divounguy spoke to Yahoo Finance anchors Seana Smith about the real estate market, mortgage rates, inflation, homebuilders advantage, and more. Subscribe to Yahoo Finance: About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more. To learn more about Yahoo Finance Plus please visit: Connect with Yahoo Finance: Get the latest news: Find Yahoo Finance on Facebook: Follow Yahoo Finance on Twitter: Follow Yahoo Finance on Instagram: Follow Yahoo Finance Premium on Twitter: ...(read more)
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Mortgage Rates Tick Down, Economist Says Homebuilders Have an Advantage Right Now The real estate market has been facing some major challenges in recent times due to the ongoing pandemic and economic uncertainties. However, there might be a silver lining for the housing industry as mortgage rates continue to decline. According to leading economists, this presents a significant advantage for homebuilders. Over the past few weeks, mortgage rates have been steadily dropping, bringing them to historic lows. The average rate for a 30-year fixed-rate mortgage hit an all-time low of 2.65% in early January, a figure not seen since Freddie Mac started recording rates in 1971. The declining rates have created a favorable environment for potential homeowners and investors looking to take advantage of the market. Economists argue that these lower mortgage rates provide a boost to homebuilders, who can now offer more affordable home financing options to buyers. With the cost of borrowing decreasing, potential homeowners may find it more feasible to purchase a property or upgrade their current living arrangements. This, in turn, can lead to increased sales for homebuilders and spur industry growth. By enabling more people to enter the housing market, lower mortgage rates also create demand for new housing construction. Homebuilders can seize this opportunity and replenish the supply of housing, which has been a concern in many markets across the country. The COVID-19 pandemic strained the housing sector as construction efforts were interrupted and supply chains disrupted. However, with favorable borrowing conditions, homebuilders can now speed up the process of developing new dwellings. Moreover, economists assert that the advantage for homebuilders is not just limited to increased demand for new construction. Lower mortgage rates also encourage potential buyers to opt for new homes rather than existing ones. With the availability of affordable financing, buyers may be more inclined to choose new constructions that often come with modern amenities and customizable features. Additionally, the low rates enable current homeowners to refinance their existing mortgages, freeing up funds that can be directed towards remodeling or home improvement projects. Homebuilders may benefit from this trend as well, as increased investments in renovation or expansion projects could drive up demand for construction materials and services. However, while the declining mortgage rates are undeniably advantageous for homebuilders, there are other factors to consider. The ongoing pandemic and economic uncertainties still cast a shadow of doubt on the market's stability. Rising material costs, limited labor availability, and potential market downturns could potentially offset the benefits of lower rates. It is essential for homebuilders to carefully evaluate market conditions, plan strategically, and adapt to changing circumstances. Effective management of costs, adopting sustainable practices, and keeping a close eye on innovations in design and construction technologies will be crucial to staying competitive in this environment. In conclusion, the recent decline in mortgage rates presents a unique advantage for homebuilders in these challenging times. The affordability of borrowing can drive up demand for new housing, stimulate construction projects, and potentially accelerate the housing market's recovery. However, homebuilders must remain vigilant, adapt to changing circumstances, and focus on prudent management practices to fully leverage this opportunity and ensure long-term success. https://inflationprotection.org/economist-asserts-current-advantage-for-homebuilders-as-mortgage-rates-decline/?feed_id=124741&_unique_id=64cfa35f7af4f #Inflation #Retirement #GoldIRA #Wealth #Investing #Bonds #business #Currencies #Equities #FX #homebuilders #investing #investment #market #Markets #money #mortgagerates #news #NYSE #personalfinance #politics #savings #stockmarket #Stocks #YahooFinance #YahooFInancePremium #InvestDuringInflation #Bonds #business #Currencies #Equities #FX #homebuilders #investing #investment #market #Markets #money #mortgagerates #news #NYSE #personalfinance #politics #savings #stockmarket #Stocks #YahooFinance #YahooFInancePremium
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