Been follow people in the real estate markets more closely lately and its interesting. I keep hearing the same things over and over.
  • Interest rates are so much higher it is keeping people from selling that have great rates locked in
  • Keeping buyers without significant cash from buying because they can't afford the payments.
  • Home supply is still historically low
  • Investors are buying at discounts
  • If rates are reduced supply shortage will quickly drive prices up due to the pent up demand
Basically it is a weird situation. If the rates are increased or kept where they are it is going to take some time for people to be willing to sell their current homes. A lot of owners are just waiting it out hoping rates go down and prices go up. Buyers are waiting for rates to go down but do not realize that supply and demand will likely drive up prices.
The advice I have heard for buyers that makes the most sense is that go ahead and buy and just plan on refinancing in a few years when rates are cut. I think the markets are not expecting rates to stay where they are for 5 or more years.
I'm no expert but people need housing and the state needs to keep the economy moving so I don't see these rates staying where they are for more than a couple years max. It is interesting to watch.