The rapid rise in mortgage rates and inflation since the beginning of 2022 is roiling the housing market and the stock market. Fears of a recession and general uncertainty about the economy mean that economists are adapting their forecasts for the year to take into account these changes.
Some changes are expected for the housing market in the coming year, but not all of the changes are negative. For buyers who have been frustrated by the lack of homes for sale and the overwhelming competition for homes, some relief may be on the way. In addition, while mortgage rates and home prices are not expected to drop, they are anticipated to somewhat stabilize. That, too, may bring some relief to buyers who have been struggling to stay ahead of price increases and rising rates.