Mark Zandi, chief economist at Moody's, shifted his outlook on the housing market from cautious optimism to a warning of potential declines in home sales, homebuilding, and prices. He attributes the current downturn primarily to low existing home sales, with predictions that new home sales and prices will follow suit as builders defer land deliveries and unsold inventory reaches a new high. Zandi believes that unless mortgage rates drop from the 7% range, the housing market will continue to weaken further in the upcoming quarters.
According to Zandi, the downturn in the housing market has primarily been influenced by low existing home sales, but changes are imminent as new home metrics begin to decline.
Zandi emphasized the pressing situation by noting, "Home sales, homebuilding, and even house prices are set to slump unless mortgage rates fall materially from their current 7% range."
Collection
[
|
...
]