Harbingers of real relief from inflationary pressures will come in the second half of 2024, as the U.S. economy deals with —
That relief, which will not occur until the following year, is behind the "survive until '25" mantra mentioned by Wachter. The phrase has also been on the lips of others at this year's Mortgage Bankers Association convention in Philadelphia.
"I do think that 2025 will be a far better year, it will be a strong year," Wachter said. "We will see inflation come down substantially, and as it does, I think we might be surprised at how fast
The current negative trends, including the imbalance in housing supply will reverse, not just for 2025, but also for a strong second half of the current decade, she said.
Rates need to come down and the
If the Fed doesn't create that attitude of calm, "we have further instability in our markets; we need to see stable markets," Wachter said. "We have fortunately a stable mortgage system and we have a sound mortgage system."
But the macroeconomic environment has to come around, she continued.
Because it is not a bubble, no