May 7, 2024 | Driving It Home with ABoR's Housing Economist

In this episode of Driving It Home, CMO Kelea Youngblood and Housing Economist Dr. Clare Knapp discuss the Federal Reserve's decision to maintain steady rates and its implications for mortgage rates. While no immediate changes are expected, there's anticipation for a potential rate cut in late 2024, which could positively impact mortgage rates. Despite modest decreases in the 10-year treasury yield, mortgage rates are expected to hover around 7%, offering some relief to both buyers and sellers.   Moving on to buyer financing trends, conventional loans dominate, with a slight increase in FHA and VA loans over recent years. The availability of various financing options, including FHA and VA loans, provides more flexibility for buyers and encourages sellers to consider a wider range of offers. Financing preferences also vary based on price cohorts, with cash buyers more prevalent in luxury and lower-priced homes.   Lastly, the discussion touches on average days on the market, highlighting shorter durations for closed leases compared to closed sales, especially in higher-priced segments. This trend reflects increased demand for rentals, particularly in single-family homes, supporting those who may face challenges in purchasing due to affordability constraints or limited inventory. The episode ends with a teaser for next week's deep dive into April's housing statistics and promotes upcoming events in the real estate market.   Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732  YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC   Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2024/03/DIH-3-26-24.pdf Connect with us on socials: https://www.abor.com/socials  Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey   Have feedback? Email us at [email protected].