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The New York Federal Reserve's annual SCE Housing Survey revealed that most Americans expect mortgage rates to soar from 6.4% to 8.4% in 2023, reaching their highest level in nearly a quarter of a century. A dire outlook for mortgage rates comes amid the Federal Reserve’s steadfast efforts to tame inflation both in the housing market and in the overall economy.

As interest rates move higher, the majority of U.S. households predict house prices will rise just 2.6% over the next year, well below the 7% rally expected in the February 2022 survey, Insider reports.

Yale economist Robert Shiller, whose analysis with Karl Case formed the basis for the Case-Shiller Index, said Monday he expects houses to become cheaper over the next six months due to an expected slowdown in US economic growth.

"It's easy to forecast the short-run in the housing market, if you're a long-term buyer it's not clear," he told CNBC's "Closing Bell: Overtime". "Home prices are very, very high by historical standards."

"I would extrapolate the downturn somewhat — it's going to continue," Shiller added. "Maybe if you have a good chance to delay your purchase, it might be a good time to do it."

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