Interest rates in June are holding relatively flat so far at an average of 5.324% for a 30-year fixed-rate nationally, according to the NAR. With that being said, it’s still a massive jump compared to where we were just a year ago. The higher rates are causing some pullback, and we’re seeing homes stay on the market longer than in previous months. (see chart)
I expect to see the absorption rates continue to climb as interest rates continue to increase. Some sources say that we’re expected to see the rates increase to 6.5% nationally by the end of 2022.
Sam Khater, Freddie Mac’s chief economist, had this to say: “Heading into the summer, the potential homebuyer pool has shrunk, supply is on the rise, and the housing market is normalizing. This is welcoming news following unprecedented market tightness over the last couple of years.”