AssetID: 53584133
Headline: UNCAPTIONED: Experts Say Fed's Rate Hikes Could Impact Housing Market for Decades
Caption: Experts Say Fed's Rate Hikes Could Impact Housing Market for Decades. Yahoo Finance reports that the housing market has been showing signs of bouncing back as this year's spring home-buying season begins. For the second week in a row, mortgage rates fell, reaching the lowest level in over a month. According to Freddie Mac, the average rate on a 30-year fixed mortgage dropped to 6.74% from 6.88% the week before. At the same time, supply is also starting to rebound, with new listings hitting a 17-month high in February. Despite the improvement, experts warn that the Fed's aggressive rate-hiking campaign could have long-lasting side effects on the housing market. According to economist Gary Shilling, the Fed's campaign has created a "perfect storm," with higher rates causing would-be home sellers to put their plans on hold. "It won't continue indefinitely, but it certainly is disruptive right now.", Gary Shilling, Economist, via Yahoo Finance. Redfin CEO Glenn Kelman shared similar views on the future of the housing market, warning it could take decades to move beyond the impact of the Fed's efforts. "There's going to be low supply for a long time to come. What the Fed did… will have a 30-year tail on it.", Glenn Kelman, Redfin CEO, via Yahoo Finance. Yahoo Finance reports that mortgage rates may be unlikely to fall much further in the near term, meaning that a more substantial rebound may still be far off. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
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