A top real estate economist breaks down how the Silicon Valley Bank failure can push more homebuyers into the housing market as mortgage rates fall faster than expected
and the ensuing turmoil in the financial sector could spark more activity in the housing market, according to Nadia Evangelou, senior economist and director of research at the National Association of Realtors.
The NAR hasn't yet published updated forecasts in the wake of the SVB fallout, but she told Insider that she now anticipates mortgage rates to fall faster than previously forecast. "We had expected mortgage rates to come down to the lower range of 6% sometime in the second half of 2023, but now we may see that level in the coming weeks," Evangelou said. "The housing sector reacts immediately to changes in mortgage rates. We expect some relief in affordability."
Rates are already coming down. The average 30-year fixed rate dipped to 6.71% from 6.79% in the prior week, the Mortgage Bankers Association said on Wednesday.If mortgage rates dip to around 6%, then more Americans would be comfortable purchasing a home compared to when it's around 6.7% or higher, Evangelou said.
But even with the uptick in mortgage demand, she said it's too soon for the NAR to change its forecast for an 11% home sales decline in 2023 compared to 2022.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SVB collapse set to completely upend the housing marketArmada ETF Advisors' Al Otero said the current troubles in the banking sector could translate into positive change for the housing market.
Read more »
Federal Investigators Probe Silicon Valley Bank Collapse; SVB and Top Execs Sued by Shareholders – Bitcoin NewsAnonymous sources say the U.S. DOJ and the SEC are investigating the collapse of Silicon Valley Bank (SVB).
Read more »
‘Chaos creates opportunities’: Strategist says to look beyond the SVB fallout — and names his top picksWorried about Silicon Valley Bank contagion? Strategist Kenny Polcari says there are some 'very good' stocks out there getting slammed for no reason.
Read more »
New SVB CEO urges top venture capital clients to move deposits backSilicon Valley Bank's new Chief Executive Tim Mayopoulos on Tuesday urged the failed bank's top venture capital clients to move their deposits to its newly created bridge entity, people who attended a virtual meeting with him said.
Read more »
Federal housing advocate talks about housing justice at Sask. conference“I need to know ... that people will not be allowed to freeze to death, or have forced amputations because they are outside,” Marie\u002DJosée Houle said.
Read more »
Huntington Beach mayor, a fierce critic of state housing mandates, lives in affordable housingTony Strickland says the 1,800-square-foot, four-bedroom condominium where he lives was purchased by his wife 19 years before they were married.
Read more »