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The Fed's effective tactics to fight inflation have calmed the real estate market. What's next?

The Fed's effective tactics to fight inflation have calmed the real estate market. What's next?

make buying a home more challenging for homebuyers, but experts predict some reduction in rates and inflation in the near future. The coming months are expected to vary depending on mortgage rates and supply and demand dynamics in the real estate market. Experts also believe that future changes in home prices will be linked to regional variations and market dynamics in each specific region.

New housing development

Despite the challenges associated with buying a home, the number of sellers in the market is expected to increase as many sellers are deciding to put their properties up for sale despite high interest rates. It is also expected to start building''new housing, which will increase supply and create more opportunities for buyers.

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However, the situation with banks may become difficult for financing residential real estate construction and development as lending terms for developers become more stringent and interest rates for development and construction loans exceed 10%. These rates are projected to decrease once the federal interest rate is lowered, but this will not occur until late 2024. This could have a negative impact on the development of new communities, which is why it is important to monitor the stability of regional banks and ensure that loans are affordable to developers.

Predictions and demand dependence on mortgage rates

In general, the real estate market will be''continue to fluctuate and demand will be driven by mortgage rates and other economic factors.

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