\nWill home prices fall?<\/h4>\n
<\/p>\n Getty Images
\n <\/span>
\n <\/figcaption><\/figure>\n<\/p><\/div>\n
Gone are the uber-low mortgage rates of 2021. Indeed, average 30-year-fixed mortgage rates have risen from roughly 3.5% to about 5.6% this year, and pros say they expect them to climb further (see the lowest mortgage interest rates you can get now here). One might think that these rising rates would help temper home price growth, as families become less likely to be able to afford a mortgage, but is that true? And what else is happening with home prices? We asked five pros to weigh in.<\/p>\n
Prediction 1: Inventory shortages mean home prices may keep rising<\/strong><\/h4>\nThe supply of homes available for sale is so low that even a big dent in demand as a result of higher rates will not transform this into a buyer’s market, pros say. “Home prices will keep going up because there aren’t enough houses available to meet demand, but the combination of rising home prices and elevated mortgage rates means fewer people will be able to afford to buy,” says Holden Lewis, home and mortgage expert at Nerdwallet, who predicts that mortgage rates will keep rising but at a slower pace than they did over the last few months (see the lowest mortgage interest rates you can get now here). This means demand will likely drop off in the fall and winter, though home prices will continue to rise, albeit more slowly, Lewis says.<\/p>\n