Interest rate hike cooling the hot housing market

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The National Association of Realtors expects home sales to drop 9% during 2022 compared to 2021 because of rising interest rates.

DENVER — Housing prices have gone up by more than 20% across the country since the start of the pandemic. To combat the hot housing market, the Federal Reserve raised interest rates.

Even if that happens, average prices are projected to be about 5% higher than they were in 2019, before the pandemic. That’s mainly because there still isn’t enough housing inventory nationwide. Existing homeowners are likely locked in for a lower interest rate, so many may try and wait to sell until interest rates go down again, but that will likely be next year at the earliest.

 

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