flexiblefullpage - default
Currently Reading

The Fed Has Successfully Kickstarted a Full-Blown Housing Correction, but What Happens From Here?

billboard - default
Market Data + Trends

The Fed Has Successfully Kickstarted a Full-Blown Housing Correction, but What Happens From Here?

The housing market is going through a period of rapid transformation, but what does that mean for buyers in the long run?

July 8, 2022
Federal Reserve building exterior
Image: Stock.adobe.com

In order to tame a mid-pandemic housing boom, the Federal Reserve put upward pressure on mortgage rates for the first several months of 2022, but as a correction takes hold, supply and demand seem to finally be balancing out. Mortgage applications are down 17% year-over-year, while new home sales and existing home sales are falling sharply, according to Fortune. 

While some popular markets across the Southwest, Mountain West, and West Coast are seeing much-needed deceleration, others are still seeing historically high gains. As mortgage rates continue to rise and housing supply increases, more signs of normalcy are popping up in a recovering post-pandemic market.

Already, spiking mortgage rates have pushed the U.S. housing market into cool-down mode. As April and May housing data trickled in, it became clear the Pandemic Housing Boom was fizzling out. In June and July, the pace of the cooling picked up.

To find evidence of the accelerated rate of cooling, just look at inventory data. Among the nation's 100 largest housing markets, the median market saw inventory rise 1% between January and April, according to Fortune's analysis of realtor.com data. That was before spiking mortgage rates kicked off the housing correction. Among those same 100 largest housing markets, the median market saw inventory rise 50% between April and June.

Read more

leaderboard2 - default

Related Stories


NAHB CEO and President Jim Tobin's 2024 Housing Outlook

From affordability to homebuyer trends, Tobin offer insights into the future of the housing market

Market Data + Trends

What's in Store for the National Housing Market in 2024

According to the 2024 National Housing Market Outlook report released on Wednesday by Bright MLS, affordability will remain the biggest challenge


Mortgage Rates Continue Third Week of Downward Trend

Thanks to the continued drop in mortgage rates, mortgage applications are up, reaching their highest weekly pace in five weeks

boombox1 -
native1 - default
halfpage2 -

More in Category

Get your sales and marketing teams together to create and deliver a consistent brand message from start to finish

Pundits may not agree on the timing nor the severity of the next economic downturn, but one thing’s certain: these 10 essential tactics will boost your business' efficiency, productivity, and profit

A closer look at what’s propelling the adoption of off-site construction methods in home building

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.