Source: Realtor —
Alot can change in just six months. Russia invaded Ukraine. The latest season of “Stranger Things” dropped on Netflix. And the housing market, which received a turbo boost from the COVID-19 pandemic, has begun to shift.
Surging mortgage interest rates are rippling through the housing market, threatening to upend real estate’s unprecedented tear. These changes led the Realtor.com® economic research team to revisit its 2022 housing forecast, issued in December, and make some adjustments. The updated midyear forecast factors in these higher rates—and the disruptions they’ve already begun to cause.
Realtor.com expects home prices and mortgage rates will continue to rise, home sales will drop as buyers are priced out of homeownership, and the housing market will continue to cool. However, in a bright spot for frustrated homebuyers, the number of homes on the market is expected to shoot up.
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