Mortgage rates and home prices have declined from record highs. However, buyers remain significantly hesitant. Moreover, amid a strong job market, further federal rate hikes are expected, which might raise mortgage rates. According to the National Association of Realtors, sales of previously owned homes dropped 1.5% month-over-month in December.
Furthermore, according to new data from Fannie Mae, homebuyers’ purchase sentiment remains well below pre-pandemic highs. Doug Duncan, senior vice president and chief economist at Fannie Mae, said, “Respondents continue to cite high home prices and unfavorable mortgage rates as the primary reasons for their pessimism.”
