2023 Market Forecast

Housing Market Forecast for October 2023

Housing market activity remains weak thanks to rising mortgage rates, elevated home prices and constrained housing inventory—a trifecta of headwinds perpetuating the housing affordability crisis. To make matters worse, the Federal Reserve may raise the federal funds rate once more before year’s end to further tame inflation.

The federal funds rate is the benchmark interest rate financial institutions charge each other for overnight loans. The rate hovered near 0% in March 2022. Then the Fed began raising rates to bring down inflation to a 2% goal. After 11 interest rate hikes, the current rate range is 5.25% to 5.5%, the highest in 22 years.