Posted 2/22/2024, 7:28:00 PM
Mortgage Rates Climb Back Towards 8%, But Strong Stock Market Keeps Homebuyers in the Game
- Mortgage rates have been climbing back up towards 8% after hotter inflation data and delayed Fed rate cuts
- A strong US stock market means homebuyers are more tolerant of high mortgage rates, says Compass CEO Robert Reffkin
- "You don't need 6% mortgage rates when the stock market is at an all-time high," Reffkin said, as tech stocks power ahead
- There are signs high rates are deterring buyers, with mortgage applications down 10% recently
- But Reffkin sees a glut of inventory easing affordability pressures, expecting "a significant increase in inventory" this spring