Housing Market Faces Lowest Sales in 15 Years as Mortgage Rates Surge

Economists predict that the housing market in 2023 will experience the slowest home sales since the 2008 housing bubble burst, with an estimated 4.1 million sales of existing homes due to high mortgage rates and low inventory. Mortgage rates are currently at their highest levels in over two decades, discouraging potential buyers and leading to a drop in mortgage applications. The last time sales were this low was during the Great Recession, and while it opened up opportunities for first-time buyers, the current high rates are causing more homebuyers to stay put, exacerbating inventory issues. However, sales of newly built homes are holding up better than existing home sales, with prices dropping and builders being more motivated to close deals.