What’s the best way to navigate the housing recession?

Housing Recession | Mortgage Rate News

How to play the housing recession

While many are second-guessing whether or not we’re in an economic recession, there’s no doubt the housing recession is real. High mortgage rates and low inventory have would-be homebuyers waving the white flag. And it seems to be happening all at once. It’s almost like someone is slamming the brakes on the housing market. Because of the dramatic slowdown, we’re also seeing builders and home sellers lower their prices.

As prices decline, make sure you’re pre-qualified with your lender, be patient and ready to act. We could see sellers get a little panicky in the weeks ahead and lower home prices faster than anticipated. If so, you could snap up your dream home without busting your budget.

Rates back below 6 Percent!

This goes to show just how volatile rates are right now. And how important it is to stay in close contact with your lender, so when rates drop like this, you’re ready to lock in. The 30-year fixed rate recently clocked in at 5.97%. For many homebuyers, this still feels astronomical, and yes mortgage rates have more than doubled since last year.

Now for a little perspective. Do you know what the average mortgage rate has been since 1971? Try 7.76% for a 30-year fixed! Yikes, indeed! Today’s mortgage rates are a bargain compared to historical averages.

What’s scheduled for this week?

We’re one week away from the Fed’s next monetary policy meeting and they’ll be looking closely at the economic numbers coming out this week. Even if the economy shows inflation is weakening, don’t expect the Fed to change its mind. All indications are we’re still on track for another interest rate hike of 75-basis-points, with the Fed’s year-end goal of pushing benchmark rates up to 4%, and slightly higher in 2023.


Consumer price index

Federal budget


Initial jobless claims

Continuing jobless claims


UMich consumer sentiment index

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