US Housing Market Softens as Mortgage Rates Rise

The US housing market is facing significant headwinds as mortgage rates continue to rise, leading to a softening of the market. CoreLogic thinks US home prices have bottomed out while KPMG expects a 2008-style decline in 2023. Would-be buyers are facing a difficult situation as the housing market's recovery in late 2022 and early 2023 is being called into question with the recent backup in interest rates.

Mortgage rates have been increasing for the past few months, making it difficult for home buyers to find an affordable mortgage. This has put a damper on the spring housing market, with the US Federal Reserve dealing homebuyers another crushing blow. Existing home sales have been trending upwards, but luxury home sales have dropped 45% during the three months ended January 31st compared to the same period the year before.

The housing market in the DC region seems to be on a different trajectory from one month to the next, with any new reports being closely watched. US housing-market sentiment is edging back to an all-time-low, as Americans are worried over rising mortgage rates and home prices. This has led to a softening of the US housing market, with a potential for a 2008-style decline in 2023 as predicted by KPMG.

To combat the rising mortgage rates, buyers and sellers are increasingly turning to mortgage rate locks, which guarantee an interest rate for a certain period of time. This can help to ease some of the burden on buyers and sellers, as it allows them to purchase or sell a home before interest rates become even higher.

The US housing market is facing significant headwinds as mortgage rates continue to rise, with a potential for a 2008-style decline in 2023. Would-be buyers are facing a difficult situation as the housing market's recovery in late 2022 and early 2023 is being called into question with the recent backup in interest rates. To combat the rising mortgage rates, buyers and sellers are increasingly turning to mortgage rate locks to guarantee an interest rate for a certain period of time.

Extract Anonymous Image Description: An image of a house that is for sale with a sign in front of it.