<p>The <a href="http://dailywire.com/topic/housing">housing market</a> is expected to cool as demand moderates, according to a Wednesday report from government-backed mortgage enterprise Freddie Mac.</p>
<p>The company’s most recent <a href="https://www.freddiemac.com/research/forecast/20220720-quarterly-forecast-market-slowdown-will-continue-high-rates-and-prices-exacerbate">Quarterly Forecast</a> predicts that 30-year fixed-rate mortgages will average 5.0% in 2022 and 5.1% in 2023, while total home sales will slow from 6 million to 5.4 million.</p>
<p>“The Federal Reserve’s action to help manage inflation has created significant volatility in mortgage rates and, by extension, the housing market,” Freddie Mac Chief Economist Sam Khater said in a <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-market-slowdown-will-continue-high-rates-and-prices?_ga=2.144200565.1999635517.1658409327-1899122076.1653489074">press release</a>. “Although house price appreciation will grow at a more moderate rate, home prices remain high relative to homebuyer incomes. Taken together, these factors are exacerbating affordability challenges and causing a slowdown in the housing market.”</p>
<p>Indeed, Freddie Mac predicts that home prices will grow at 4% in 2023 — a relative slowdown from 17.8% in 2021 and 12.8% in 2022. In the first quarter of 2022, the median sale price of a home in the United States was $428,700, according to <a href="https://fred.stlouisfed.org/series/MSPUS">data</a> from the U.S. Department of Housing and Urban Development, marking a 33% rise from $322,600 in the second quarter of 2020.</p>
<p>“The housing market has gone through booms and busts before,” Heritage Foundation research fellow Joel Griffith told The Daily Wire. “However, home costs now — in terms of inflation-adjusted prices and prices to median household income — are at all-time record highs. With interest rates more than doubling this past year, mortgage payments on a typical home have gone up more than 50% in many parts of the nation.”</p>
<p>Indeed, the 30-year fixed-rate mortgage began <a href="https://www.dailywire.com/news/pending-home-sales-unexpectedly-surge-even-as-mortgage-rates-near-6">climbing</a> at the beginning of 2022, according to <a href="https://fred.stlouisfed.org/series/MORTGAGE30US">data</a> from Freddie Mac. Beginning at slightly over 3% in January, mortgage rates neared 6% in June and moderated to 5.5% as of Thursday.</p>
<p>Griffith pointed to monetary stimulus from the Federal Reserve as a driver behind housing market disruptions. In response to COVID and the lockdown-induced recession, the central bank lowered interest rate targets and ramped up its purchase of <a href="https://www.dailywire.com/news/watch-powell-admits-that-fed-policies-are-behind-high-home-prices">mortgage-backed securities</a>, leading to a decline in mortgage costs even as home prices continued to rise.</p>
<p>“The current plunge in home affordability is largely the result of continued heavy government subsidies of the housing market — thanks to mortgage giants Fannie Mae and Freddie Mac — combined with trillions of dollars of mortgage-backed securities purchased by the Federal Reserve,” Griffith continued. “To restore housing affordability, the government and central bank footprints must be diminished and regulations for new housing supply diminished. Otherwise, expect home prices to remain out of reach for far too many families.”</p>
<p>On the supply side, construction of new long-term housing had <a href="https://www.dailywire.com/news/is-the-housing-market-about-to-crash">already been slowing</a> over the past several decades — resulting in 6 million too few homes on the market. As costs for lumber, steel, copper, and other raw materials began to rise amid pervasive supply chain issues induced by global lockdowns, labor shortages diminished the number of builders and contractors available to work on housing projects.</p>
<p>“Housing inventory has rebounded somewhat from the lows earlier this year. However, future inventory will depend on housing permits being granted on the local level, borrowers retaining access to credit, and prices becoming more affordable,” Griffith remarked. “Affordability works two ways: enabling new buyers to enter the market and making it possible for sellers to purchase a new home — often larger — at a reasonable price.”</p>

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Home Prices, Mortgage Rates Expected To Stay Elevated Through Next Year

CONTINUE READING

Bud Light Sales Continue To Plummet, May Soon Lose Status As Number-One Beer

‘Profoundly Christian’: Former Head Of Anglican Church Presses British Government To Endorse Assisted Suicide

Ben Shapiro Reacts To Debt Limit Deal, Hits Both Democrats And Republicans Over Spending Habits

‘The Chosen’ Defends Pride Flag Spotted On Set: ‘Let The Show Speak For Itself’

Chick-Fil-A Faces Backlash As Their Diversity Efforts Resurface, Other Woke Brands Take Beating

North Korea Sentenced Two-Year-Old To Life In Prison After Family Caught With Bible: State Department

News and Analysis

Economy

Federal Reserve

Housing

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News and Analysis —

Home Prices, Mortgage Rates Expected To Stay Elevated Through Next Year