1702 Viewmont

HW+ House cut out graphic

We’ve all been wondering what 5% plus mortgage rates would do to the hot housing market, and now we’ve got that and a bag of chips. This topic is something very near and dear to my heart because going back to the summer of 2020, I have said that one of the only factors that could cool down the housing market was the 10-year yield getting over 1.94%, which would result in higher mortgage rates.

The home-price growth from 2020 through 2022 has been so unhealthy that I’ve labeled this a savagely unhealthy housing market as inventory has once again collapsed on a year-over-year basis in 2022. As a result, I’ve been rooting for mortgage rates to rise to create a balancing impact on this housing market.

Have higher rates worked? It’s still early to see the full effects, but here’s what we can tell from current data.

What higher rates should accomplish