Published by FOX Business | April 13, 2022
The real estate market isn’t dead despite rising mortgage rates, one market expert says
“What we’re still seeing is really strong demand in the housing market because of the shortage of houses that were built over the last eight or so years,” Advisors Capital Management partner Joanne Feeney told FOX Business’ Maria Bartiromo. “And we have all these millennials coming out now and buying houses.”
Though the U.S. average 30-year mortgage rate rose to 5.13% last week, its fastest pace since 1994, Feeney explained that homebuyers are feeling the pressure to close a deal now before it’s too late.
“People have waited so long already,” she noted, “but I think now they’re just getting desperate.”
Feeney warned the housing supply shortage will take years to fix, and it’s up to builders to meet the demand.
“When you look at the lack of existing homes being put on the market for sale because people know they can’t find another one, it’s going to come to the home builders to be able to provide that supply,” Feeney said.
Regardless of age or generation, the market expert believes Americans want to buy cheaper homes to keep up with surging rates.
“What people are going to do is they’re going to trade down a little bit,” Feeney said, “buy a little bit of a cheaper house in order to keep their monthly payments about the same, even with those higher mortgage rates.”
As a result, this creates a multi-year opportunity in the housing stock market, according to Feeney.
