The U.S. housing market stares down an even bigger economic shock
Unbeknownst to buyers lining the sidewalks outside of frenzied open houses this spring, the Pandemic Housing Boom was already in its final inning.
This housing correction is far from over.
A borrower in January who took out a $500,000 mortgage at a 3.2% rate would be on the hook for a $2,162 monthly principal and interest payment over the course of the 30-year loan.
But more markets could soon move into the falling home price camp.
And so there are a lot of markets across the country where we’re forecasting that home prices are going to fall double-digits,” Rick Palacios Jr., head of research at John Burns Real Estate Consulting, tells Fortune.
Unlike the 2008 housing crash, this time around we don’t have a housing supply glut nor a subprime crisis.