The real estate market saw a massive setback during the COVID-19 outbreak as government-imposed restrictive measures led to a closure of commercial activities and a decline in the need for real estate services. Moreover, the Fed’s aggressive pace of rate hikes amid the ongoing macroeconomic conflicts has resulted in a sharp decline in the demand for houses.
“Demand has completely fallen off the table. Affordability was strained already from the surge in home prices, when you layer on top of that this never-before-seen pace in mortgage rates, it compounds the problem,” Greg McBride, chief financial analyst of Bankrate.com, said.
