Are house prices set to plummet in the near future? For some Realtors, mortgage rate hikes are worrying

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Are house prices on the verge of plummeting?

The mortgage rates are rising. They have risen from 3% in January, to more than 6 percent today.

The once-hot housing market is cooling. In some areas, prices are dropping by 5-10%. 25% of homes that are on the market have seen their prices drop.

“It’s changing week to week now. Every time interest rates go up, people stop coming,”Lindsay Katy, a Los Angeles realtor, said. She reduced the price of one her listings by 40%,000.

“We went into escrow I think about a week after we lowered the price. The open houses aren’t as busy as they were,” Katz said.

Experts say prices won’t fall further due to low inventories.

“There’s less than two months worth of inventory in most of the towns that people are attracted to. Because of that, it is still a seller’s market,” real estate broker James Hughes said.

Fortune Magazine polled more than half of the economists who predicted a recession. This is due to the increased energy prices and the global effects of the war in Ukraine.