Housing Market Sees Mini Rebound as Buyers and Sellers Return, But Affordability Squeezes Persist
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Housing market activity has turned a corner as the "lock-in effect" eases and more homes come onto the market. Existing home sales and inventory rose in February.
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Homebuilder sentiment, hiring, and chronic undersupply indicate more construction ahead, though issues like NIMBYism persist.
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This spring season is a "mini rebound" - new listings up but affordability still a major barrier with high prices and mortgage rates.
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Immigration may be contributing to resilient housing demand and low vacancy rates. Mortgage rates forecasted to decline further.
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While the housing recovery will be gradual, supply/demand dynamics mean the market is not an economic vulnerability. The average mortgage rate in the economy remains relatively low for now.