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Home buyers are taking advantage of falling rates, says housing market analyst Ivy Zelman

Home buyers are taking advantage of falling rates, says housing market analyst Ivy Zelman

14.8.2019

Home buyers are taking advantage of falling rates, says housing market analyst Ivy Zelman

Housing market analyst Ivy Zelman, known for predicting the 2005 housing peak and the 2012 housing bottom, spoke to CNBC's Power Lunch on Wednesday.

Key Points Falling rates are a good thing for the home buyers, notes housing market analyst Ivy Zelman. Zelman said every quarter-point decline in mortgage rates, is equivalent to a 3% drop in home prices. "Right now, housing prices are down for the consumer more than 10%, so it makes it much more affordable," Zelman told CNBC's Diana Olick on Wednesday. A contractor uses a hammer while working on townhouse under construction at the PulteGroup Metro housing development in Milpitas, California, Oct. 25, 2018. David Paul Morris | Bloomberg | Getty Images While Wall Street panics about falling rates, Main Street is benefiting, especially in the housing market, according to housing guru Ivy Zelman. She says every quarter-point cut in mortgage rates is equivalent to a 3 percent drop in the price of a home. "Right now housing prices are down for the consumer more than 10%, so it makes it much more affordable," Zelman, told CNBC's Diana Olick on Wednesday. "We are seeing very good activity, especially in the low end of the market." Zelman is known for predicting the 2005 housing peak and the 2012 housing bottom. She is the founder or Zelman & Associates, a research firm that surveys housing market experts for institutional investors and corporate executives. Interest rates have been falling in the U.S. and abroad as worries about a trade war and a global slowdown cause investors to ditch riskier plays and buy into bonds, a historically safer trade. The yield on the benchmark 10-year Treasury note was at 1.623% on Wednesday, below the 2-year yield at 1.634%, causing a key yield curve inversion that sent markets tanking. Although stock market investors are worried tumbling rates and an inverted yield curve mean recession, Zelman said home buyers are not as "laser focused" on market headlines. "Main street is actually doing very well. Consumers have jobs, they're seeing wage inflation, and I think overall confidence is still strong," she said. Related Tags Read more: CNBC

Falling housing prices indicates a lack of confidence in the market We are heading into a TrumpRecession And the market is waking up to it

More signs point to a softer housing market, even as mortgage rates fallBuilders and buyers alike are pulling back, even as mortgage rates fall to multiyear lows. The housing market is simply too pricey, and consumers are starting to worry about the economy and their personal finances.

Refinances Double; 20 Million Homeowners Could See A Mortgage Rate DropMortgage rates hit an almost three-year low last week, and it seems homeowners are finally taking full advantage.

Morgan Stanley analysts say Fed to cut U.S. rates in SeptemberMorgan Stanley analysts said on Monday that they now expect the U.S. Federal Res... Stand by... Somebody's gonna blow a gasket. No $h1t!

Cramer: Trump's tariff delay short squeezed stocks to spark a rallyTrump gave the market a boost when it seemed like 'everything is falling apart and the stock market's about to roll over,' Jim Cramer says. jimcramer lost it! He became Mr. Captain Obvious and a Trump pleaser! We are witnessing a failed presidency in real time. He is not well. As long as he’s at the helm, U.S. will not be well. It will take a decade to recover because of his economic antics. Is he manipulating the stock market ?

French second-quarter unemployment rate falls to 8.5% from 8.7% in first quarterFrance's unemployment rate fell to 8.5% in the second quarter from 8.7% in ... All these tedious efforts in changing the way the unemployment rate is calculated are finally paying off.

French jobless rate fell in second-quarter to lowest level since end-2008France's unemployment rate fell back during the second quarter to reach its... The chemistry is palpable. tRump will take credit in 3, 2, 1...🙄 Like OBAMA he changed the unemployment formula....



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