According to the Bankrate survey of large lenders, the average interest rate on a 30-year fixed-rate mortgage was 7.17% as of May 29, 2024. The same survey showed median home prices are above $400,000 and pending home sales are down 7.7%.
That news would make it seem odd to consider housing stocks a good buy, but the housing market is proving to be nothing if not resilient. Despite restrictive monetary policy pushing interest rates (and mortgage rates) higher for longer and inflation raising the price of new constructions, the appetite for homes continues to rise.
However, the market is forward-thinking. If interest rates move lower at some point in late 2024 or even early 2025, that will be bullish for new home sales. Lower rates would, therefore, logically be bullish for housing stocks. In this special presentation, we're looking at seven housing stocks you can buy today with the expectation of a strong return as the housing market normalizes.
Click the "Continue to Slide #1" button to view the first company.
