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Yahoo Finance
Mortgage rates have increased for the first time since the week of May 30, sparking concerns in the housing market. National Association of Realtors® (NAR) deputy chief economist and vice president of research Jessica Lautz joins Wealth! to discuss the mortgage rate implications on the US housing market's outlook. Lautz describes the rate increase as "really difficult" and "discouraging" for prospective homebuyers. She highlights the ongoing struggle to find affordable housing inventory, emphasizing the critical need for new home construction to boost supply. Many existing homeowners are reluctant to sell due to their locked-in lower rates, further complicating the inventory shortage. "Certainly mortgage rates, if we see them coming down even a little bit, could be encouraging news for homebuyers," Lautz tells Yahoo Finance. However, she cautions that home prices continue to rise. "In fact, if we see mortgage rates come down, we could see more bidding wars in the housing market today with this really limited housing inventory." This interplay between rates and inventory "is just part of the equation that perhaps some people may not feel encouraged to jump into right now," she adds.
