“Higher For Longer” Rates Keeping Buyers Sidelined Even As Inventory Rises

Just as inventory is picking up, “higher for longer” decisions by the Feds are keeping buyers sidelined with 7% interest rates. That’s according to First American, which has released its April 2024 Home Price Index report. The data suggests that a recent uptick in inventory will boost sales activity as the spring buying season peaks but won’t result in a full turn-around of demand. Homebuyers and sellers are often the same – sellers have to buy a new home in order to move – and have a financial disincentive to do either. Nearly 90% of mortgaged homes have a rate below 6%.  At the same time, home prices are up 53% compared to pre-pandemic levels and keep rising month-over-month. Some…