Housing Market Crash 2022: Expected Mortgage Rate Hikes
Many people who want to buy a house have been waiting for the market to crash so they can finally get in.
Even though it seems like home prices are going down, they haven't become more affordable since mortgage rates went through the roof and hit a 20-year high.
Consumers are confused about what the future holds for the economy as a result of the persistent rise in inflation.
While the Fed keeps raising interest rates to bring supply and demand back into balance, many people who want to buy a home don't know what to do.
The real estate market is experiencing a slowdown in terms of both sales and pricing as a direct result of rate hikes.
Since March 2022, when the Fed finally had to admit that inflation was here to stay, it has been raising interest rates.
change when the cost of borrowing money goes up. The Fed has even said that rates could reach 4.6% in 2023.
As the Fed raises interest rates to slow down the economy and fight inflation, there will be pain in many areas.
One place where the effects will be felt is in the housing market, because high mortgage rates will make people less likely to buy homes.