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Macro

NAR’s Yun: Mortgage Rates Near 7% Weigh on US Home Sales

National Association of Realtors chief economist Lawrence Yun said US mortgage rates and home sales move inversely, so the modest decline in buying activity amid high rates is unsurprising. Buyers have not collapsed, with job and wage growth supporting demand, though mortgage rates may soon hit 7%.

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AI take

The signal here is the tension between affordability and labor income: rates near 7% are cooling transactions without breaking demand, because employment and wages are still doing the work. That matters for anyone watching housing's drag on consumption and for markets pricing the path of rates. Whether buyers keep absorbing higher financing costs, or whether the labor backdrop softens first, is the open question.

Generated by AI for reference only.

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