U.S. housing market awaits boost after worst key season in years

NEW YORK, Sept. 13 (Xinhua) -- The U.S. housing market just had its worst spring selling season in a dozen years, and the major question now is whether the Federal Reserve can orchestrate a soft landing that keeps the economy strong while also dropping rates enough to jump-start the stalled housing market, reported Bloomberg News on Friday.

"The good news is that rates will most likely be lower next spring. The big question is why they're lower," Scott Buchta, head of fixed income strategy for Brean Capital, was quoted as saying. "If rates are lower because the economy is slowing, home prices might get hit by consumer confidence. Then the question is: 'Do I want to take a bigger mortgage? How stable am I in my job?'"

Rates on a 30-year fixed mortgage have fallen nearly 160 basis points from a recent peak in October 2023, and expectations are building that the Fed's meeting this month could shepherd in even lower borrowing costs, said the report.

"That may ease the affordability crunch that drove average monthly sales in April through June to the lowest level for that period since 2012, according to Redfin Corp," it added.