“The critical underpinnings that have supported a slow but steady housing recovery, including a strong economy, low unemployment, high consumer confidence and limited home inventory, remain solidly in place,” Marshall added. “While buyer concerns around affordability and rising mortgage rates appear to have impacted near term market dynamics, traffic trends indicate that buyer interest levels are still high and that the overall housing recovery remains on track.”
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The housing market has been struggling from a short supply of homes and rising prices, which has diminished affordability for potential buyers, Reuters reports.
Furthermore, mortgage rates has pushed higher to the 5% threshold for the first time in several years, raising concerns over a potential slowdown in the industry for the year ahead as the economy sees full employment saturation.
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