Existing Home Prices Hit Record $402,000—But Sales Fall As Housing Market 'Painfully' Adjusts To Rising Rates
ForbesMAR 18 2022
Home sales have now returned to the more sustainable - and rational - levels of 2019, before the pandemic-induced spending spree set in. This is good news: although high mortgage rates will be a challenge for some buyers, they will also slacken demand and help to bring prices back to reality.
Higher mortgage rates may be necessary to cool off inflationary pressures, but they're making homes even more unaffordable for the vast majority of Americans. Homes that were affordable for middle-class Americans with a monthly budget of $2,500 are now well out of reach given the recent rate hikes and their impact on mortgage rates.