LK Marketing and Real Estate

Rising inflation, soaring home prices, and increased mortgage interest rates
have combined to cause a slowdown in the U.S. housing market. To help quell
inflation, which reached 8.6% as of the last measure in May, the Federal Reserve
raised interest rates by three-quarters of a percentage point in June, the
most significant interest rate hike since 1994. Higher prices, coupled with 30-year fixed
mortgage rates approaching 6%, have exacerbated affordability challenges
and rapidly cooled demand, with home sales and mortgage applications
falling sharply from a year ago.

With monthly mortgage payments up more than 50% compared to this time
last year, the rising costs of homeownership have sidelined many prospective
buyers. Nationally, the median sales price of existing homes recently
exceeded $400,000 for the first time ever, a 15% increase from a year ago, according to the National Association of REALTORS®. As existing home sales continue to soften nationwide, the housing supply is slowly improving, with inventory up for the second straight month. In time, price growth is expected to moderate as supply grows; for now, however, inventory
remains low, and buyers are feeling the squeeze of higher prices all around.