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Rising Mortgage Rates and Limited Inventory

Spring Housing Market Faces Rising Mortgage Rates and Limited Inventory

Posted on February 28, 2024
Writer: James Miller

As spring approaches, the housing market braces for higher mortgage rates and tighter inventory, signaling a new norm for buyers and sellers alike.

Per the National Association of Realtors, the market has shown signs of activity resurgence, with existing home sales seeing increasing 3.1% from December to January. This period also saw a slight 2% rise in unsold home inventory.

Despite mortgage rates climbing past 7% again, the market is adjusting to the Federal Reserve’s stance on interest rates, with no immediate reductions in sight. This has prompted both buyers and sellers to reassess their expectations, driven by lifestyle changes rather than waiting for favorable market conditions.

The shift has also introduced more negotiation space, with about 20% of home listings in January experiencing price cuts, offering potential buyers an opportunity to negotiate better deals. As the market continues to evolve, buyers and sellers are advised to stay informed and adapt to the changing landscape, leveraging opportunities as they arise. 

For more detailed insights into the ongoing adjustments in the housing market, read the full article on NBC News.

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