Mortgage rates have ticked up this week, with the 30-year fixed rate sitting at 6.86%. Toggle AI chief market strategist RJ Assaly joins Market Domination to analyze the state of the housing market and where buying opportunities lie for investors.
Assaly points to homebuilders as a good opportunity despite their recent underperformance. He explains that interest rate cuts from the Federal Reserve will likely make mortgages more affordable, increasing the demand for homes. He adds that lumber has been down, but the tide is beginning to turn, which is good news for homebuilders.
He says that rate cuts, in particular, will be a major factor in the housing market, explaining, "On the macro side, you’ve seen this sort of lock-in of mortgages where people who have had very low rates on their mortgages being unwilling to move. And you’re starting to see even with the wage increases and wage pressures, hopefully, the mortgage rates coming down sort of helps that problem of job mobility and people moving and help with the volume of housing that’s turning over."
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