Climbing Mortgage Rates Are Keeping Home Buyers Away. Brace for Another Hit.

• Existing-home sales expected to slump to lowest level in over a decade
• Rising mortgage rates have negatively impacted housing market sentiment and mortgage applications
• September’s report expected to show a significant month-over-month decline in existing-home sales
• Only 16% of respondents in a housing market sentiment survey believe it’s a good time to buy a house
• Low level of mortgage applications indicates future home sales may be affected
• Industry sentiment among home builders has turned pessimistic
• Home builder ETFs have fallen about 12% to 14% in the past six weeks
• JPMorgan analyst sees further upside for the industry in 2024 despite rising rates

Buyers are feeling down about the housing market as mortgage rates continue to rise. Existing-home sales are expected to slump to the lowest level in over a decade. Rising rates have negatively impacted housing market sentiment and mortgage applications. September’s report is expected to show a significant month-over-month decline in existing-home sales. Only 16% of respondents in a housing market sentiment survey believe it’s a good time to buy a house. Low levels of mortgage applications indicate that future home sales may be affected. Industry sentiment among home builders has turned pessimistic. Home builder ETFs have fallen about 12% to 14% in the past six weeks. Despite these challenges, a JPMorgan analyst sees further upside for the industry in 2024.