The housing market is entering the ‘most significant contraction in activity since 2006,’ says Freddie Mac economist.
Cracks are beginning to appear in the red-hot housing market. The pandemic's housing boom is finally running on fumes. Home sales are falling. Inventory levels are rising. And home sellers are cutting list prices at the fastest clip since 2019.
Spiraling mortgage rates on top of record-high and still-rising home prices are leading many experts to predict the real estate market is on the verge of a correction—if it isn’t already in one. They anticipate home prices will flatten, or even go down a bit, in certain markets.
This Shift is a lot bigger than a seasonal cooldown. The economic shock of higher mortgage rates means borrowers…