Brian Wesbury, the chief economist at First Trust Advisors, argues that mortgage rates are unlikely to return to the historic lows of 3%. He discusses the potential influence of Vice President Kamala Harris’s proposed $25,000 tax credit, the anticipated interest rate cut by the Federal Reserve, and the ongoing issue of inflation, impacting the housing market.
Negative
With the expectation that mortgage rates will remain elevated and given the impact of inflation, demand for housing may decrease, negatively affecting homebuilders and related stocks. Additionally, interest-sensitive sectors could face headwinds.
Positive
Kamala Harris's proposed tax credit may stimulate demand in the housing sector, which could provide some support to homebuilders in the near term, potentially benefiting related stocks.
Oct 11, 2024, 12:01 PM
The former president often implies that deportations will bring down housing costs. Reality is more complicated.
Oct 10, 2024, 1:34 PM
The Consumer Price Index (CPI), the main measure of inflation, increased 0.2% in September, a similar increase consumers saw in August and July, the Bureau of Labor Statistics reported.
Oct 10, 2024, 6:50 AM
Recent falls in rates could come to "an abrupt halt" in the next few days, according to brokers