The economy is in bad shape, many are already in recession and fear that house prices are still very high. Homebuyers face a tough market this year. Mortgage rates rose by more than 2 percentage points in the first six months of 2022, with monthly payments at median home prices up nearly 50% to $2,514. Other economic indicators are making people uneasy, including high inflation, a bear market for investors, and the possibility of a recession. When you think of recessions and the real estate market, the bankruptcies of 2008 probably come to mind. Home prices have fallen, variable rate mortgage payments have increased, and millions of homeowners have been foreclosed. Naturally, today’s potential buyers may worry that the purchase doesn’t make sense during an economic downturn.
This MoneyTalk News article by Leslie Cook was exceptionally well written and gives a good insight on the market right now!