Higher Interest Rates May Help Housing Market
Higher Interest Rates May Help Housing Market: Higher Interest Rates May Help Housing Market By Mike Sunnucks For buyers, higher interest rates mean less home for the money. But the market may benefit if those rates create a better balance between the number of buyers and sellers. WEST PALM BEACH, Fla. – Six of the nation’s top 25 most overvalued housing markets are in the Sunshine State, which can expect to see a “prolonged period of unaffordability” even as prices in other regions of the country cool. Recent studies by three South Florida universities and the University of Alabama point to the same high demand and low inventory as reasons for the homebuyer and rental angst experienced since the start of the pandemic, but the research also found future population growth in Florida will extend housing woes. Fort Myers led the state as the most “overvalued” market in April with homebuyers paying 51% more than they should based on historic pricing trends, according to a study by Florida ...