The housing market displays some interesting correlation, specifically the relationship between mortgage rates and home prices. According to some recent data, a 1% decrease in mortgage rates has the same impact on affordability as an 11% decrease in home prices. However, it is more likely that mortgage rates will decrease by 1% than home prices will decrease by 11%.
The data indicates that the housing market has been slanted toward home sellers for several years, with bidding wars and above-asking offers. However, the market appears to be rebalancing in favor of home buyers in 2023. Affordability remains a question, with uncertainty about what will happen with mortgage rates and home prices.