Real Estate News
The National Association of REALTORS®' chief economist believes there's one ingredient that is holding back home sales this year — and it may be one of the toughest to nail down. During a June 3 economic forum at NAR's mid-year legislative meetings, Lawrence Yun said he's seeing signs that buyer demand is ongoing, home price growth is moderating and wage growth is outpacing inflation. However, 30-year mortgage rates continue to hover around 7% — and that is hurting the market. "The mortgage rate is the magic bullet, and we are just waiting and waiting as to when that could come down," Yun said. So far this year, the Federal Reserve has declined to cut interest rates, and Fed Chair Jerome Powell said just last month that he "couldn't confidently say" whether any cuts will happen in 2025. While uncertainty about tariffs is keeping the Fed cautious, Yun said there are plenty of other factors that could convince the government to resume cutting interest rates. For example, inflation — especially on shelter and energy — is softening. If other countries wind up lowering their rates through new agreements with the U.S. amid the current tariff war, that could also help cool inflation.