With mortgage rates now at a two-year high, the nation’s housing industry worries that the Federal Reserve’s decision to increase the benchmark interest rate this month and the prospect of additional increases next year will have a serious fallout on home construction and sales in 2017. Added to the mix is the rise in home prices fueled in many areas of the country by a lack of housing inventory, both new and existing homes. The problem of the disparity of supply and demand is illustrated by the disclosure of November’s existing home sales. Home re-sales unexpectedly soared to reach their highest level in 10 years as homebuyers rushed to lock in favorable interest rates before rate increases hike borrowing costs. The National Association of Realtors tells us its November survey [...]
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12/23/16 5:53 PM