Duncan explained, “Listings have trended generally upward of late, suggesting to us that a rising number of current homeowners can no longer put off moving. However, we believe the ongoing affordability challenges are likely to weigh on how quickly these new listings convert to actual sales.”
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Terry Loebs, founder of Pulsenomics, commented on the broader implications for affordability: “A slowdown in home price growth and easing mortgage rates offer a glimmer of hope that the peak of the housing affordability crisis may be behind us. However, the price surge of over 50% nationwide since early 2020 has created a high hurdle that will, unfortunately, keep many aspiring homeowners on a slower path to achieving their dream.”
A majority of the panel expects any loosening of the “lock-in effect” to result in either “somewhat” or “significant” deceleration in home price growth. “However, we believe the ongoing affordability challenges are likely to weigh on how quickly these new listings convert to actual sales,” Duncan added.
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