The housing market's significance to the nation's economy cannot be overstated, a fact evident in the events of the past year. In 2022, the market took unexpected twists and turns, leaving both experts and analysts surprised. As we venture further into the new year, the housing market continues to defy predictions and expectations. This is attributed to a combination of factors, including elevated mortgage rates, inflation, persistently high home prices, and a scarcity of inventory in most local markets—factors that are deviating from the norm. Furthermore, the recent banking crisis has compounded the already unusual pressure on the housing market.

• Mortgage rates have been on a rollercoaster ride since the beginning of 2023.Following five consecutive weeks of declines between March and April, mortgage rates rose for two consecutive weeks only to dip again. In May, mortgage rates have held steady, with the 30-year, fixed-rate mortgage averaging 6.39% for the week ending May 18, up from 6.35% the week prior, according to Freddie Mac.

Though rates are approaching the levels where they started in 2023—and threatening to surpass them—housing market watchers continue to hold out hope that mortgage rates peaked last year and will soon resume their steady decline, assuming the Federal Reserve backs off on rate hikes.

Tony Cardenas Host

IndyPodcast.media