Economic Bellwether
The U.S. housing market is expected to experience a gradual decline in interest rates by 2025, following a peak in mortgage rates at 7.79% in 2023. The Federal Reserve has kept interest rates high despite a decrease in inflation. President Biden has proposed a tax credit to assist first-time homebuyers and those looking to upgrade. Experts anticipate that mortgage rates will decrease to around 5.9% by 2025, potentially alleviating the “lock-in effect.” However, challenges still exist due to rising property prices and low inventory. Luxury real estate markets, less impacted by mortgage rates, continue to flourish and are driven by wealth growth and international demand. Changes in U.S. interest rates also affect global real estate markets, with varying impacts across Europe, Asia, and New Zealand. Read the Full Article Here