Wells Fargo’s economics team holds little hope for a housing recovery anytime soon after a year that saw mortgage rates more than double.
The national median existing single-family home price is expected to fall roughly 5% in 2023, according to the Wells economists. However, they expect home prices to remain above the average levels seen in 2021 based on expectations of resilient housing demand. Still, the economists see the prospect that sidelined homebuyers could jump into the housing market, especially if rates start falling.
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