CNBC - Closing Bell Overtime
December 23, 2025
With mortgage rates expected to remain elevated and affordability still top of mind, Alan shared his perspective on mortgage and housing affordability during CNBC’s Closing Bell Overtime.
December 23, 2025
With mortgage rates expected to remain elevated and affordability still top of mind, Alan shared his perspective on mortgage and housing affordability during CNBC’s Closing Bell Overtime.
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In a recent interview with Ted Oakley of Oxbow Advisors, Ivy's perspective on mortgage rates and the housing market demand were referenced within this article, "If we don't see any type of improvement in the economy and rates are stubbornly higher than 6%, I think you are going to see pricing continue to decline."
North Carolina’s capital had the biggest monthly drop in rents among major U.S. apartment markets where rates fell in November, the latest sign the nation's surge in rent increases is easing. This past week, Ivy was a guest on the Walker Webcast. She provided her thoughts on what's happening now with rent levels saying, "The October numbers were pretty ugly."
In a recent article about home prices and the fed tightening of rates, Zelman & Associates was referenced with our forecast where U.S. home prices might be headed: "Back in the summer, the boutique research firm forecasted that U.S. home prices would fall 4% in 2023 and another 5% in 2024. Fast-forward to November, and Ivy Zelman, founder of the firm, says we could now see a 20% peak-to-trough decline."
The Fed's fight against inflation has led to high mortgage interest rates, cooling housing demands. Alan provided his thoughts on the housing downturn which could be "a multi-year process as buyers and sellers are both likely to stay on the sidelines if they are unsatisfied with the offers they receive, or if higher rates dismay them."
In this episode, Willy welcomes Kris Mikkelsen, Ivy Zelman, and Aaron Appel.
Alan believes the housing market won't recover any time soon and a housing market recovery will take years. He said, "We were seeing levels of inflation, at least in our part of the world, housing, that clearly were not healthy, clearly were not sustainable," he said. "It should have been clear to everybody that if things continued at that level that there were going to be problems."
Surging mortgage rates have quickly turned the tables for would-be buyers qualifying for loans. As a result, a slowdown of qualified buyers have significantly decreased. The Las Vegas market is already seeing a meltdown. Ivy provided her thoughts saying, “How rapidly things have deteriorated is pretty remarkable,” but “there’s a huge difference from the go-go days of exotic mortgage products and no money down,” with the latter quote referring to the loose lending environment before the 2007 crisis.
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