The end of rate hikes in real estate can have a significant impact on the market. Parties anticipate continued stagnation until the market has a reasonable level of certainty that rates have stabilized. Most believe this could last through the first six months of the year. During this period, parties will likely sit on the sidelines, waiting until rates stabilize¹².
The average 30-year rate fell from 7% to 6.5% in the course of two days when it was announced that there would be no more rate hikes³. Stubbornly high consumer price inflation is decelerating, if slowly. It was running at 9% in mid-2022 before showing some improvement to 6% in February’s data³.
The average 30-year rate fell from 7% to 6.5% in the course of two days when it was announced that there would be no more rate hikes³. Stubbornly high consumer price inflation is decelerating, if slowly. It was running at 9% in mid-2022 before showing some improvement to 6% in February’s data³.
National median home prices declined in February for the first time in more than a decade, according to the National Association of Realtors⁵. And the Mortgage Bankers Association predicts rates will continue to rise throughout 2023⁵.
According to the National Association of Realtors (NAR), national median home prices declined in February for the first time in more than a decade1. The NAR forecasts existing home sales to be down about 7% in 2023 with median home prices about flat with year-ago levels2. The Mortgage Bankers Association predicts rates will continue to rise throughout 2023.
(1) How High Interest Rates Are Affecting Real Estate. https://www.natlawreview.com/article/2023-outlook-impact-interest-rate-hikes-real-estate-market.
(2) 2023 Outlook: The Impact of Interest Rate Hikes on the Real Estate …. https://www.afslaw.com/perspectives/alerts/2023-outlook-the-impact-interest-rate-hikes-the-real-estate-market.
(3) End Rate Hikes – nar.realtor. https://www.nar.realtor/magazine/real-estate-news/economy/end-rate-hikes.
(4) What The Fed’s March Rate Hike Means For Housing | Bankrate. https://www.bankrate.com/real-estate/how-fed-rate-hike-affects-housing/.
(5) Mortgage Rate Forecast For 2023 – Forbes Advisor. https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/.
