New home sales for the month of May fell over 11%, against an expected -0.2%, according to the US Census Bureau. A higher inventory of homes sitting on the market and higher mortgage rates are putting pressure on the housing market as a whole.
KPMG senior economist Yelena Maleyev joins Wealth! to give insight into the current housing market landscape and how it may evolve moving forward.
Maleyev claims that it will be a while before the sector sees relief, only estimating one interest rate cut by December: "We’ve pushed that forecast out into December, so we do expect one rate cut in December, which will help bring overall mortgage rates to perhaps around 6.5 by the end of the year. That’s probably not what people who are waiting for those 3% mortgage rates are wanting to hear, but unfortunately, those days are behind us. "
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