The housing market will likely remain strong for the rest of 2016 with initial reports showing total home sales up 4% year-over-year for September. Realtor.com's Jonathan Smoke takes a look at the housing market for September and what is likely to come for the rest of the year as 2016 draws to a close.
Smoke highlights that the new-home market has gained momentum, representing 10% of home sales this year compared to 8% last year, and that the housing market outperformed the economy in the first half of the year. The Federal Reserve raising short term interest rates in December is one thing he says will likely happen:
While short-term rate policy does not affect mortgage rates directly, the mortgage market often moves ahead of policy changes. And that’s what we’re now seeing with mortgage rates, which are currently where they were before the Brexit vote in June.