
The residential real estate market was frozen in November, with economists claiming the principal factor to be the rapid increases in mortgage rates. Home sales declined 7.7% sequentially and 35.4% year-over-year in November, marking the fourth consecutive month of declining home sales.
The Federal Reserve's aggressive rate hikes have made borrowing expensive. This, along with elevated construction costs, has caused a housing recession. According to Lawrence Yun, chief economist at the National Association of Realtors, home sales will decline by 7% next year, and the national median home price will increase by 1%.