CEO makes bold forecast for housing market as trend signals positive outlook

The housing market has seen a lot of volatility this year, from high mortgage rates to expensive home prices, but one CEO believes the market will improve in the future.

Inter Ikea CEO Jon Abrahamsson Ring, who oversees franchisees in all 63 markets, believes more consumers will invest in their homes, which could lead to increased demand for home goods, including kitchen products.

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Ring told FOX Business that the company is already seeing the home furnishings space pick up momentum, and he expects that trend to continue into the second half of 2024.

He also predicts that kitchens will become profitable for the company by 2026 thanks to lower interest rates and improving inflation, which could boost consumer confidence and spending.

Lawrence Yun, chief economist for the National Association of Realtors, told FOX Business that signs are starting to emerge that home sales are picking up. He explained that buyers have more choice, mortgage rates are lower than last year, and jobs are still being added to the economy.

Mortgage rates rose for the fourth week in a row, with current mortgage rates averaging 6.54% for a 30-year fixed rate loan, up from 2023 when the 30-year loan was 7.79%.