The all-important spring housing market is well underway, but expectations are falling short due to the war in Iran and its impact on both the U.S. economy and consumer sentiment. Mortgage rates, which were previously forecast to be far lower this spring than last, are now much higher, and concerns over employment and inflation are throwing cold water on pent-up homebuyer demand. Buyers in the first quarter of this year were more concerned about the economy and mortgage rates than they were...

Fulfilling expectations of a “hawkish cut,” the central bank’s Federal Open Market Committee lowered its key overnight borrowing rate by a quarter percentage point, putting it in a range between 3.5%-3.75%. However, the move carried caution flags about where policy is headed from here and featured “no” votes from three members, which hasn’t happened since September 2019. The 9-3 vote again featured hawkish and dovish dissents – Governor Stephen Miran favored a steeper half-point reduction...

Mortgage rates are expected to decrease by nearly 1% by year’s end — from 6.6% down to as little as 5.75% — according to recent housing...