The extraordinarily low mortgage interest rates of recent months will provide some boost to the market, though the scaling back of Fannie and Freddie’s higher mortgage limits will be a factor going in the other direction. However, the main factor weighing on house prices has to be the enormous amount of excess supply in most parts of the country. The inventories of new and existing homes for sale remain above normal levels. In addition, there is a large amount of inventory not showing up on the market, which is best demonstrated by the near record vacancy rate nationwide.


For more, check out the latest Housing Market Monitor.

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