High Mortgage Rates Bring Cautious Buyers into the Market

The average 30-year fixed mortgage rate has hit 6.58%, according to Freddie Mac, causing difficulties for would-be homebuyers. Vivian Gueler, chief financial officer at Pacific Trust Group in Los Angeles, joined 'Marketplace' host Kai Ryssdal to discuss the impact on her business.

Gueler acknowledged that rates are not expected to go down anytime soon and that buyers are becoming more cautious due to rising interest rates. However, she noted that there has been a slight increase in inventory this year, allowing some buyers to jump into the market.

'People just got tired of waiting,' Gueler said. 'There's certainly no anticipation for rates to go down.' She also mentioned that the Federal Reserve is meeting today and tomorrow, with a 62% chance that rates will remain steady.

Gueler predicted that if interest rates stay high, the housing market will be at least status quo, possibly experiencing a slight dip. However, she emphasized that this would not lead to a crash in the market. She also highlighted the challenges faced by first-time buyers due to rising costs and stagnant wages.