Source: yahoo!finance —
If you’re a homebuyer hoping for a break on home sale prices amid rising mortgage rates, it’s likely not happening this year, or next.
Aside from record-low inventory, a big culprit for even higher home prices points to inflation.
“It’ll [inflation] keep them positive. I don’t expect to see 18% in price appreciation. That’s a function of all the stimulus that was in the economy and the urge to move away from the virus,” Doug Duncan, chief economist at Fannie Mae told Yahoo Finance. “But we do expect house prices to be positive.”
Some homebuyers have been waiting on the sidelines hoping for a cool-off in the housing market. For over a year they were hearing that those rock-bottom mortgage rates were fueling massive demand, driving prices higher.
Now that the 30-year fixed mortgage rate for week ending Thursday rose to 3.56% from 3.45%, some homebuyers may be hoping a cool-off is around the corner. That’s an unlikely scenario, said Duncan.