People are still a little uncertain of what the market will do, but I see prices and mortgage rates holding steady over the next few months. After this, both will start to move up. We have a shortage of homes with strong demand. The hard part for buyers is accepting the higher cost of money, and therefore higher monthly payments. Rents are going up as well. For the first-time buyer or tenant, it’ll simply cost them more for house payments or rent. The move-up buyer will be reluctant to move, leaving a low rate for a higher rate is a big obstacle. Those doing well financially will resist, but will see the benefits of improving their lifestyle and buying now before prices go higher later. The higher end market will do well. All of this can change if the Federal Reserve raises rates higher and drives us into a recession, which they are unlikely to do, or they lower the rates and fuel the fire of inflation even more, that may not happen either. They most likely will leave rates high enough to slow inflation and dampen growth slightly, but nothing drastic. Congress will continue their reckless behavior and justify it with absurd rhetoric about equality, when it’s only about power and bigger government.
