According to Redfin, housing costs could stabilize within the next five years if mortgage rates fall to 6% and home price growth remains steady. On the other end, the housing economy could stabilize at a slightly longer rate, six years, if mortgage rates remain the same, at about 7.5%, and home price growth flattens.
“Many house hunters feel stuck between two bad options: Stretch themselves to buy at today’s rates or wait for lower rates only to see prices climb further out of reach,” said Redfin Senior Economist Asad Khan. “But prospective buyers shouldn’t get hung up on timing the market. These hypothetical scenarios should give would-be buyers and sellers some hope that the market can normalize with only modest changes in rates or prices.”
