Michael Seward’s Post

“Mortgage rates, which fell in anticipation of the Fed’s move, have since reversed direction, reflecting expectations that the Fed would not rush additional rate reductions. The average 30-year fixed rate home loan was 6.6 percent on Wednesday, according to Mortgage Daily News, up from 6.1 on Sept. 17, the day before the Fed’s rate cut. Even though the current rate is well below the peak of 8 percent a year ago, affordability — the combination of sale prices and mortgage costs — is the lowest it’s been since at least the early 1980s, Goldman Sachs research shows.” #realestate #Massachusetts #pioneervalley #HomeSweetHome https://lnkd.in/e5mHYCrt

“The question, as ever, is where and how they will build. This is why other economists, such as Ed Pinto at the market-oriented American Enterprise Institute, have said Ms. Harris’s plan would make shortages worse by inflating housing demand (because the home buyer credit would give families more to spend) without doing enough to increase supply.” #Massachusetts #PioneerValley #RealEstate #Homes https://lnkd.in/efmedX2M

“But surging insurance costs, high mortgage rates and high home prices have more people reassessing the Florida dream. Those who must sell their homes right now because of life changes are finding a frosty reception as demand dwindles.” #realestate #homesweethome https://lnkd.in/eRc9da_n

“The law represents Massachusetts’ most pointed attempt to produce more housing in decades, and the principle behind it — compelling communities to change restrictive zoning rules that have helped fuel the shortage — is key to the state’s housing strategy moving forward.” #Massachusetts #HomeSweetHome #realestate #AffordableHousing https://lnkd.in/efAYUXVM

Then there are higher costs for land, labor, and materials. The rise in interest rates, too, has made it more expensive both for developers to build new housing and for homebuyers to get a mortgage. Also at play: demographic shifts, including millennials looking to buy their first homes and baby boomers locked into their residences by low mortgage rates. The popularity of remote work has driven up housing costs in formerly more affordable markets outside of expensive big cities like New York, Boston, and San Francisco. And the increasing prevalence of short-term rentals and investor-owned properties has reduced the number of houses for sale.” #RealEstate #Massachusetts #PioneerValley https://lnkd.in/eYNdqzh6

“Though average rates on a 30-year mortgage dropped to just over 6% this week, high home prices keep the monthly payments out of reach. Rents are high too, but the gap between the two is still often hundreds of dollars apart on average. … This combined shortage of buyers and sellers has sapped the market’s usual frenzy, leading home sales to decline in August even as mortgage rates fell.” #realestate #homesweethome #Massachusetts #pioneervalley https://lnkd.in/ekdrbRPR

“On a regional basis, pending home sales rose in the West, South and Midwest, while falling in the Northeast. The year-over-year change in the national sales rate remained negative, however, declining 3.0% from August 2023.” #Massachusetts #pioneervalley #homesweethome #realestate https://lnkd.in/ejG2uh4W

“‘Any further decline in mortgage rates will be minimal,’ Lawrence Yun, chief economist at the National Association of Realtors, said last week. ‘Future Fed rate cuts are not only anticipated but will not be as impactful because large federal borrowing will leave less capital available for mortgage lending.’” #Massachusetts #pioneervalley #realestate #homesweethome https://lnkd.in/euKk4_Vx

“Harris’s proposal to build millions more homes draws fans among ‘Yes in My Backyard’ activists.” #RealEstate #Massachusetts #PioneerValley #homesforsale https://lnkd.in/eSNsjF6g

“The expectation for lower short-term rates has already been priced into current mortgage rates, economists say, meaning that mortgage rates might not fall further in the coming weeks.” #realestate #Massachusetts #pioneervalley #homesforsale https://lnkd.in/e2SDUytx