FILE – A “For Sale” sign is posted in front of a home in Hollywood, Florida. (Photo by Joe Radle/Getty Images)
The housing market has seen big swings this year, from high mortgage rates to soaring home prices, but one CEO believes the market will improve going forward.
John Abrahamson Ring, CEO of Intel IKEA, which oversees franchisees in all 63 markets, said more consumers are investing in their homes, including kitchen appliances. We believe that demand for home furniture may increase.
Related: Mortgage rates rise again this week – what’s the forecast for November?
Ring told FOX Business that the company is already seeing some momentum in the home furnishings space and expects that trend to continue into the second half of 2024.
He also predicts that kitchens will become profitable for the company by 2026, based on lower interest rates and improving inflation that could boost consumer confidence and spending.
Lawrence Yun, chief economist at the National Association of Realtors, told FOX Business that signs are starting to appear that will lead to an increase in home sales. He explained that there are more options for buyers, mortgage rates are lower than last year, and jobs are still being added to the economy.
Mortgage rates have increased for the fourth consecutive week, with current mortgage rates averaging 6.54% for a 30-year fixed-rate loan, compared to 7.79% for a 30-year fixed-rate loan in 2023.
