Mortgage rates expected to stay high, impacting the housing market
- Goldman Sachs predicts home prices will fall due to high mortgage rates and low supply
- Home sales expected to reach lowest level since the early 1990s
- Home prices to fall in the winter and rise in March 2024
- Mortgage rates to remain elevated, dipping to just under 7% by the end of next year
Factuality Level: 7
Justification: The article provides information from Goldman Sachs analysts about their predictions for home prices and mortgage rates. It includes specific data points and quotes from the analysts. However, it is important to note that this is a single source and does not provide a comprehensive view of the housing market. Additionally, the article does not provide any counterarguments or alternative perspectives.
Noise Level: 7
Justification: The article provides some analysis on the factors that will contribute to falling home prices, such as high mortgage rates and low supply of houses for sale. However, it lacks evidence or data to support its claims and does not provide actionable insights or solutions. The article also includes some irrelevant information about text-to-speech technology and an advertisement. Overall, the article contains some noise and lacks scientific rigor.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of high mortgage rates and low housing supply on home prices. This can have implications for the real estate market and potentially affect financial institutions involved in mortgage lending.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on the impact of mortgage rates and housing supply on home prices, without mentioning any extreme events or significant disruptions in the financial markets.
Public Companies: Goldman Sachs (GS), Redfin (RDFN)
Private Companies:
Key People:
According to Goldman Sachs, home prices are expected to fall for the rest of the year due to high mortgage rates and a low supply of houses for sale. This is likely to result in the lowest level of home sales since the early 1990s. However, the analysts predict that home prices will rebound in March 2024 after falling in the winter. Despite the rebound, home price growth will be muted, with prices expected to rise only 1.3% over the full year of 2024. Mortgage rates are also expected to remain elevated, dipping to just under 7% by the end of next year. These high rates are impacting home-buying demand, with mortgage applications reaching their lowest level in 28 years.
