In reality, Redfin agents report that buyers and sellers are waiting until after the election, which aligns with its survey that revealed nearly one-quarter of prospective first-time buyers are holding off to see what Harris or Trump do next.
However, home sales and listings are still holding up. The typical US homebuyer’s monthly mortgage payment is up to $2,593, brought on by rising mortgage rates and high home prices. Chen Zhao, Redfin’s economic research lead, said she expects a bigger drop-off in home buying and selling activity because of the jump in mortgage rates.
“While it’s not unusual for mortgage rates to rise heading into an election as investors’ expectations change, mortgage rates surging to 7% after the Fed’s interest-rate cut is surprising, as is the fact that pending sales have remained resilient,” Zhao said.
“There was a possibility that mortgage rates would rise after the September rate cut, but we didn’t expect them to rise this much. There was a window of 6% mortgage rates early this fall, but that window was shorter than expected. It’s possible 7% rates will also have a short window; rates could decline depending on the outcome of the election, if the worries driving bond-market investors to demand higher rates dissipate.”
Source: mpamag.com