The odds home prices will decline in your local housing market, as told by one interactive chart

There is a chance that home prices will decline in local housing markets according to an interactive chart. One of the big problem with spiking mortgage rates is that it out prices some of the potential homebuyers which leads to higher prices but also more of a demand. The 30 year fixed mortgage rate increased from 3.11% in December to 5.11% just four months later. That may not seem like much but for someone with a $500,000 mortgage it’s nearly an extra $600 each month.

Key Takeaways:

• The average 30 year fixed mortgage rate rose from 3.11% in December to 5.11% just 4 months later.
• There is a bunch of pressure on the housing market but at the same time home prices aren’t expected to crash.
• The problem with these rising mortgage rates is that it can cause an economic shock which will see home values fall.

“Historically speaking, that inflation fighting playbook is particularly hard-felt in the housing market, where spiking mortgage rates can quickly price out homebuyers.”

Read more: https://fortune.com/2022/04/27/how-likely-home-prices-decline-in-every-major-housing-market-corelogic/