Washington CNN —Sales of newly built single-family homes in the United States soared in March despite mortgage rates remaining elevated that month.
Housing market poised to remain difficultThe broader US housing market is expected to remain tough for Americans, with mortgage rates poised to stay well above 6% this year, economists say.
The Federal Reserve doesn’t directly set mortgage rates, but its actions do influence them, and the central bank isn’t expected to cut interest rates anytime soon.
“Despite high prices and mortgage rates, homebuyers have limited options on the resale market, although resale inventories have improved some over the course of this year,” Gregg Logan, managing director at RCLCO Real Estate Consulting, said in a note Tuesday.
“The willingness of the major homebuilders to utilize incentives such as price reductions, mortgage rate buy-downs and paying buyers closings costs continue to support a healthy pace of new home sales,” he added.
Persons:
” Gregg Logan, “
Organizations:
Washington CNN —, National Association of Realtors, Housing, Federal Reserve, Fed, Real Estate Consulting
Locations:
United States, Northeast