Please ensure Javascript is enabled for purposes of website accessibility
2022: The End of Cheap Mortgages and Start of Icy Cold Housing Market
News
By News
Published 1 year ago on
December 27, 2022

Share

Young families like Evan Paul and his wife were ready to buy a home at the beginning of 2022. They said when they first started their search, houses were being bought up way above their listing prices due to low interest rates at the time. “There’d be, you know, two dozen other offers and they’d all be $100,000 over asking,” says Paul.

Then came the Fed’s rate hikes, and the Pauls could no longer afford the homes they’d been looking at. The quick increase in mortgage rates cast a chill on the housing market. Buyers stopped searching; no longer able to afford homes they were considering a year ago.

Home prices have remained mostly high despite the drop in sales because inventory remains low. “People are stuck,” says Lawrence Yun, chief economist with the National Association of Realtors.

Yun and others describe the market as frozen since sales activity has declined for 10 months straight, according to NAR. It’s the longest streak of declines since the group started tracking sales in the late 1990s.

“The sellers aren’t putting their houses on the market and the buyers that are out there, certainly the power of their dollar has changed with rising interest rates, so there is a little bit of a standoff,” says Susan Horowitz, a New Jersey-based real estate agent.

Read more on NPR.org.

RELATED TOPICS:

DON'T MISS

Stock Market Today: S&P 500 Sets a Record After Wall Streets Breaks Out of Its Lull

DON'T MISS

California Wants to Pay Doctors More Money to See Medicaid Patients

DON'T MISS

Federal Reserve Still Foresees 3 Rate Cuts This Year but Envisions Fewer Cuts in Future

DON'T MISS

Boomtown Clovis: 600 Homes Win Partial Approval, More Land Annexed

DON'T MISS

Realtor Association Settles Lawsuit on Commission Rules. Fresno Broker Fears the End of Market Transparency

DON'T MISS

Fresno Activists Say Population Forecasts Don’t Justify Growth. What Are the Consequences of Being Wrong?

DON'T MISS

Homebuilders’ Rep for Fresno and Madera Steps Down After Nearly Two Decades

DON'T MISS

What You Need to Know About California Housing and Corporate Landlords

DON'T MISS

What You Need to Know About California Housing and Corporate Landlords

DON'T MISS

Sweet Victory! Oaxacan Community Goes From Renters to Owners of Fresno Mobile Home Park

No data was found

Former Sen. Joe Lieberman, Democrats’ VP Pick in 2000, Dead at 82

14 hours ago

Trump Criticizes Judge and His Daughter After Gag Order in Hush-Money Case

15 hours ago

CA Insurance Market ‘in Chaos,’ Says Former Insurance Commissioner. Can Lara Fix It?

16 hours ago

Stock Market Today: S&P 500 Sets a Record After Wall Streets Breaks Out of Its Lull

16 hours ago

House Speaker Mike Johnson Headed to Fresno on April 4

16 hours ago

Bredefeld, Smittcamp Debate the Salary of Valley Children’s CEO

16 hours ago

CA’s Liberal Government Has a Long History of Caving to Special Interests

16 hours ago

Corrupt Process? Bullard, Edison Parents Blast Handling of Superintendent Search

17 hours ago

Police Had About 90 Seconds to Stop Traffic Before Baltimore Bridge Fell. 6 Workers Are Feared Dead

18 hours ago

NBC Has Cut Ties With Former RNC Head Ronna McDaniel After Employee Objections, Some on the Air

18 hours ago

Supermom Carmi Is Ready to Be Embraced by Her Forever Family

Carmi, an incredible 1-year-old kitten mama, can be very gentle but can also get overstimulated and give love bites. Even her warm, honey-co...
Animals /

1 hour ago

Animals /
1 hour ago

Supermom Carmi Is Ready to Be Embraced by Her Forever Family

9 hours ago

Ukrainian Navy Says a Third of Russian Warships in the Black Sea Have Been Destroyed or Disabled

Composite image of President Trump and Devin Nunes
13 hours ago

Wired Wednesday: How Going to Work for Trump Turned Devin Nunes Into a Millionaire

14 hours ago

Former Sen. Joe Lieberman, Democrats’ VP Pick in 2000, Dead at 82

15 hours ago

Trump Criticizes Judge and His Daughter After Gag Order in Hush-Money Case

16 hours ago

CA Insurance Market ‘in Chaos,’ Says Former Insurance Commissioner. Can Lara Fix It?

16 hours ago

Stock Market Today: S&P 500 Sets a Record After Wall Streets Breaks Out of Its Lull

16 hours ago

House Speaker Mike Johnson Headed to Fresno on April 4

MENU

CONNECT WITH US

Search

Send this to a friend