Mortgage applications have risen despite higher interest rates due to a complicated set of factors. Refinancing has dropped, while home purchase applications have stayed strong, suggesting demand for housing remains high. However, experts wonder how much higher rates can go before demand is crushed. Housing prices have remained stable due to a lack of available homes for sale. Future interest rates are uncertain, but predictions range from 8% to 5%.
Inflation rose to 3.5% in March, driven by higher housing, gasoline, and other costs. However, some areas, like groceries, have seen improvement. While overall inflation is still elevated, wage growth has outpaced inflation, boosting household buying power. Experts believe inflation may be taking longer to subside than expected, but progress is being made and a return to normal levels is anticipated.
