Some real estate markets are cooling off as mortgage rates hit 20-year highs

Burbank Inflation, rising mortgage rates and record high prices are making it difficult for many Americans to buy a home. But there may be some respite due to skyrocketing rates helped to calm Some of the hottest housing markets in the country.

According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage is now 6.92%, the highest since 2002, and more than double that of a year ago. According to the National Association of Realtors, housing affordability is down 29% compared to a year ago. constant rate hike The Federal Reserve is also putting pressure on the real estate market.

Nationwide, home prices rose 43% in two years, according to the S&P CoreLogic Case-Shiller Index.

But now, in cities where there has been such a huge hike, prices are falling.

“We’ve just seen mortgage rates doubling this year. And in some markets, we’re starting to see prices below those sky-high levels,” said Jill Schlesinger, business analyst at CBS News.

According to S&P, the fastest cooling markets are Seattle, Las Vegas, San Jose, San Diego, Sacramento and Denver. Chicago, Albany and Milwaukee have strong hold.

“A year ago, people were buying homes with unseen, multiple offers,” Los Angeles real estate agent Craig Strong told CBS News. “It’s a great time to make an offer on a house in small numbers.”

Strong said buyers and sellers need to adapt to a changing market, especially during the declining traditional home sales slowdown.

“It’s just a changing market,” Strong said. “2008, that was a crash landing. But I think it’s going to be a soft landing. It’s going to happen over a period of time as people adjust to the new rates and the new purchase price.”

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