Interest rates
Today’s rate in my market area of Southern California:
30 year conforming - 6%
15 year conforming - 5.75%
30-year rates have been below 6% since last March. So we see interest rates are inching up.
Analysts say they expect housing to slow next year under the impact of rising interest rates.
On the other hand,
The Commerce Department reported Wednesday that construction of new homes and apartments rose by 3.4 percent last month to a seasonally adjusted annual rate of 2.11 million units, the fastest pace since last February. Analysts had been forecasting that housing construction would decline by 1.7 percent in September, believing that increases in mortgage rates would finally start to cool the red-hot housing market. (Associated Press)
Who has a crystal ball? Only in hindsight can we be accurate in our analysis of the housing market.