Over the past five months, mortgage rates have spiked from 3.11% to 5.25% in a major effort by the Federal Reserve to cool a booming housing market and slow down overall price growth. Thus far, the Fed’s initiative seems to be working, Fortune says. Purchase applications are declining, inventory is rising, and home prices are decelerating nationwide, but the odds of a price correction are still relatively low in some regional markets.
Prices may be slowing, but they will likely remain at record highs throughout much, if not all of 2022, Fortune predicts. Of 392 U.S. markets recently analyzed by CoreLogic, just 70 reportedly have a greater than 40% chance of home prices dropping over the coming 12 months.
Last month, Fortune reached out to real estate research firm CoreLogic to see if it would provide its assessment of the nation's largest regional housing markets. CoreLogic looked at 392 U.S. markets in April and found that 17 regional housing markets had a greater than 40% chance of seeing local home prices decline over the next 12 months.
The U.S. macroeconomic situation has soured since April. To see if that downturn has shifted the outlook of the housing market too, Fortune once again asked CoreLogic to run an assessment of regional housing markets. The finding? Now 70 regional housing markets have a greater than 40% chance of home prices dropping over the coming 12 months.