Finally, America's housing market is starting to loosen up. But it'll be a bumpy road back

It’s been a volatile year for the US housing market. Rising mortgage rates and home prices have discouraged buyers and sellers. However, the anticipation of interest rate cuts by the Federal Reserve is breathing new life into the market. New home sales increased by over 10% last month, reaching the highest level since May 2023. Existing home sales also rose by 1.3%, breaking a four-month decline. Despite these positive signs, housing affordability remains a challenge. Home prices are still rising, and supply is not keeping up with demand, limiting the potential for a full recovery. Lower mortgage rates may provide some relief, but it will take time for them to drop significantly. The average mortgage rate is expected to drift down to around 6% over the next year. The chronic lack of homes on the market continues to be a major challenge for the housing market, impacting prices. Proposed solutions by political candidates include using federal land and constructing millions of new housing units. However, experts suggest that there is no quick fix for the unaffordable housing market and that a solution will require time and effort from all stakeholders.