The slight slowdown in home price growth came as mortgage rates reached their highest levels since 2008, a result of the Federal Reserve’s efforts to rein in inflation by hiking its benchmark interest rate, the fed funds rate. While home prices will continue to rise, the rate will be only 5% by May 2023, according to CoreLogic. With mortgage rates about 50% higher than they were a few months ago, buyers are being pushed out of the market, which should lead to a rapid deceleration in price growth, CoreLogic Deputy Chief Economist Selma Hepp said in a statement. “The normalization of overheated buying conditions should bring about more of a balance between buyers and sellers and a healthier overall housing market,” Hepp said. Have a question, comment, or story to share? You can reach Terry at tlane@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
