Interest Rate Hikes and Their Impact

The Federal Reserve’s aggressive interest rate hikes throughout 2022 and into 2023 have significantly cooled the housing market. Higher borrowing costs translate directly into higher mortgage rates, making homeownership less affordable for many potential buyers. This has led to a decrease in demand, slowing down the rapid price appreciation seen in previous years. Experts anticipate that interest rate hikes will continue to influence the market in the near future, though the pace and extent of future increases remain a subject of debate among economists.

Inventory Levels and Their Significance

While still historically low, inventory