First American Chief Economist Mark Fleming underscores the market's sensitivity to rate fluctuations, drawing parallels with the Global Financial Crisis and emphasizing the need for rate stability for a recovery.
Shifts in primary, secondary, and demand components of mortgage spreads challenge affordability; analysts predict rates may stabilize between 6.5-7.5% for the year.
Consumer house-buying power decreases amidst rising rates, uncertain outlook.
Double-dip recession included both existing- and new-home markets.
Mortgage rates reduce buying power by 0.7%
Potential Home Sales Model suggests sales pace will begin to settle into a new normal.
Decline a surprise following report of growth in builder confidence.
Jody Mulkey Previously Worked At GoodRX and Ticketmaster
Historical data shows that a relationship between prices and mortgage rates is not straightforward.
Despite lack of supply, Potential Home Sales Model improves, First American says.