Written by Breck Hapner
As expected, Federal Reserve Board Chair Jerome Powell raised benchmark interest rates yet again during December, as reported by AP News, in a further attempt to slow down the pace of stubbornly high U.S. inflation.
Although this decision was met with disdain by those in the housing and investment markets, other indicators are pointing to many positive trends, notably a slight reduction in inflation and mortgage rates and a strong job market.
These factors combined depict a tenacious U.S. economy that may yet avoid what forecasters are calling “a coming recession.” All this bodes well for the housing market, which has certainly taken its lumps the past few months but is remaining somewhat resilient despite higher prices and lower inventory.
It is easy to reminisce about the recent-past housing market characterized by bidding wars and low interest rates. With current mortgage rates at 20-year highs, the new reality is that buying activity has plummeted. However, experts say the worst isn’t over and real estate markets will certainly experience some pain in 2023.
So, what is the state of the housing market now?