Home Prices Are Expected To Fall – Even If There Isn’t A Recession

    Home prices in many markets have already begun to drop as a result of the Fed’s interest rate hikes. The question is how far will they drop? We’ll be referencing this article from

    Whether or not we’re in a recession, it’s clear that the housing market has drifted dramatically.

    A year ago, homes were selling in mere hours as buyers outbid one another.

    However, when the Fed began raising its rates, mortgage interest rates also went up, making it significantly more expensive for buyers to afford housing.

    Home prices have begun coming down from the summer, and many would-be buyers aren’t purchasing homes.

    Sellers, realizing they missed the peak, are holding off on listing their homes. Many who need to sell are cutting prices.

    Some fear the Fed’s course of action could be too much for the housing market to withstand. Prices have been falling from a peak in June. And while prices are still up from a year ago, many real estate experts predict they’re about to fall much further.

    Mortgage rates have more than doubled in the past year, rising from an average of 2.87% this time last year to 6.7% for 30-year fixed-rate loans in the week ending Sept. 29, according to Freddie Mac. Those higher rates have made monthly mortgage payments about 74% more expensive than they were this time last year.

    Home prices are expected to fall—whether the nation succumbs to a recession or not. Buyers simply can’t afford the giant price tags plus the highest mortgage rates in 15 years.

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