NASHVILLE, Tenn. (WTVF) — Housing experts said prices could fall as much as 20 percent next year, but it comes at a time when mortgage rates could be their highest ever.
Rates are expected to keep climbing into the new year as there continues to be less demand for homes. Both of those are huge factors for prices.
Mortgage rates have more than doubled this year, which has forced some homeowners to pump the brakes on selling their property in some cases because they would have to get a mortgage to buy another home.
It comes as the Federal Reserve continues to push up borrowing costs to curb inflation. Experts said rates could reach a skyrocketing 8.5 percent which would be a big shock to the housing market.
The average rate on a typical 30-year mortgage rose this week to 6.94 percent. In January it was 3.2 percent.
According to the National Association of Realtors, nationwide home sales fell to 4.7 million last month, down 1.5 percent from August.
Here in Nashville, the median is sitting just under $460,000, according to Zillow, so a lot of potential homebuyers are in need of good deals where they can find them.
