Last year's mortgage rate shock was so abrupt that researchers at Zillow had no choice but to repeatedly issue sharp downward revisions for their 12-month home price outlook. In March 2022, Zillow had been expecting home prices to rise 17.8% over the next 12 months. By December 2022, however, that was slashed all the way down to a forecasted decline of 1.1%.
Fast-forward to April 2023, and not only have mortgage rates stabilized around 6.5% this spring but the housing correction has also lost steam. That explains why Zillow stopped issuing downward forecast revisions, and is actually starting to raise its outlook.
