Sunday, July 20, 2014

Economists Discuss the Economy and How It Relates to the Housing Market


The pace has slowed down for the recovery of the housing market, especially from what it was in 2013. Economists weigh in on why this is occurring and what to expect for the rest of 2014.

One economist from Freddie Mac gave an interview with HousingWire and said that the improvement in the housing market has been flat with lower demand for home purchases early this summer. Of course, it is expected to pick up with numbers looking better over the summer. At the same time, it is expected to have a slower pace than what was seen last year at the same time. Economists expect the numbers to continue to be below what was seen in 2013.

An economist with Equifax agreed with the perception of the current housing market. A weak labor market is impacting the housing recovery and any sign of stalling is a cause for concern. On the other hand, almost all of the states are showing improvement from 2013 and no areas of rapid decline.

Even the Federal Reserve chair Janet Yellen has said that the housing market has leveled off. Much of this is due to the rise of mortgage rates. At the same time, other numbers have shown positive indications. Existing home sales and new and pending sales have been showing an upswing.

One of the issues that has experts concerned is the fact that the market is still volatile. One area of the country may be booming while another area is stagnant. The numbers can even change between reports. This unpredictability has many analysts concerned.

Another area that has some worried is the lack of first-time buyers who are purchasing. With tighter lending requirements, it has left many interested home buyers out of the picture. While some argue that the change is necessary to prevent future crisis, it has also had a negative impact on the number of buyers that can qualify.

No matter what economists or other experts say, the housing market is in a better place than it was. Homes are still affordable and interest rates are still low. It is still a good time to buy.

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