A perfect storm has would-be buyers across the country hesitating to enter the housing market. According to Redfin, existing and pending home sales last month sank to their lowest level on record, with the exception of the early months of the pandemic.
Why the strange limbo, though? It all started with the pandemic, at least for the purposes of this story. People could work from anywhere and mortgage rates were lower than ever, so they bought homes. It fueled a housing boom, but one that didn’t last long. Scorching hot inflation pushed the Federal Reserve into action, and the central bank raised interest rates multiple times, indirectly pumping up mortgage rates. So people stopped buying and selling homes.
