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The housing scarcity that began before the epidemic will last for a long time as market demand rises, according to Taylor Morrison’s chief executive. “Mortgage rates will rise when the economy improves, which I believe is to be expected. “They’re not going to stay below 3% forever,” remarked CEO Sheryl Palmer on “Closi.” “Bell, g.” “However, the paucity of supply and the tremendous demand will be with us for years to come,” she warned. Mortgage demand fell for the second week in a row this week, dropping 1.8 percent to its lowest level since the beginning of 2020, according to the Mortgage Bankers Association’s seasonally adjusted index released earlier Wednesday. Even though mortgage rates fell, house purchase applications and mortgage applications to refinance a home both fell for the week. Despite these changes, Palmer voiced optimism in the “strong housing market” and continued demand in all areas and among all customer types. “We’re seeing some figures surrounding mortgage applications,” Palmer said, “but I believe we really need to separate the supply and demand that we’re seeing out there.” Palmer has led Taylor Morrison in Arizona since 2007. “In terms of new and resale inventory, we’re at multiyear lows, and it’s going to be very difficult for us to make up the shortage, the deficit that we’ve been building up for more than a decade,” she added. During the coronavirus epidemic, home prices in the United States skyrocketed, thanks to a surge in demand for homes and a lack of available inventory. Some analysts are concerned about first-time purchasers being priced out of the market as a result of this. According to a recent research from the National Association of Realtors, housing inventory growth has slowed in the aftermath of the 2008 housing crisis, resulting in a “underbuilding gap” of 5.5 million to 6.8 million housing units across the US since 2001. Last week, Coldwell Banker CEO Ryan Gorman told CNBC that “more inventory is the remedy to everything that ails us right now.” According to Realtor.com, new listings jumped 5.5 percent year over year and 10.9 percent compared to May in June, indicating a probable bright spot in the near term. Between May and June, historically, there have been few listings. Low mortgage rates experienced during the pandemic should be taken into account while evaluating the market, according to Palmer. “In terms of affordability, a consumer buying a [$300,000], $400,000 house today versus a year ago will have a lower payment,” she added. “Consumers’ behavior shifts, and they’re no longer extending themselves in the same way that they were years ago. We can see that the consumer has a lot of flexibility in terms of what they can afford and what they buy.”/nRead More

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