Housing market not dead despite rising mortgage rates: Portfolio manager
US average 30-year mortgage rate rose to 5.13% last week
Advisors Capital Management partner Joanne Feeney argues the housing market isn't dead despite rising mortgage rates.
The real estate market isn’t dead despite rising mortgage rates, one market expert argued on "Mornings with Maria" Wednesday.
"What we're still seeing is really strong demand in the housing market because of the shortage of houses that were built over the last eight or so years," Advisors Capital Management partner Joanne Feeney told FOX Business’ Maria Bartiromo. "And we have all these millennials coming out now and buying houses."
Though the U.S. average 30-year mortgage rate rose to 5.13% last week, its fastest pace since 1994, Feeney explained that homebuyers are feeling the pressure to close a deal now before it’s too late.
"People have waited so long already," she noted, "but I think now they're just getting desperate."
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Feeney warned the housing supply shortage will take years to fix, and it’s up to builders to meet the demand.
Joanne Feeney told FOX Business there is "really strong demand" in the housing market. (Getty Images)
"When you look at the lack of existing homes being put on the market for sale because people know they can't find another one, it's going to come to the home builders to be able to provide that supply," Feeney said.
Regardless of age or generation, the market expert believes Americans want to buy cheaper homes to keep up with surging rates.
"What people are going to do is they're going to trade down a little bit," Feeney said, "buy a little bit of a cheaper house in order to keep their monthly payments about the same, even with those higher mortgage rates."
As a result, this creates a multi-year opportunity in the housing stock market, according to Feeney.
"Some of these stocks are just incredibly cheap here, like Lennar," the market expert noted.
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With this movement in the market, Fenney said she’s not so concerned about a looming housing bubble or recession.
"There's also a lot of concerns about recession, which I think are a little bit misplaced here," Feeney added. "I think it's a little premature to worry about that, given what's going on on the production side of the U.S. economy, which is still really strong."