‘Housing will remain weak throughout the winter,’ economist says

There is one troubling word that Freddie Mac’s chief economist Sam Khater uses to describe the winter 2023 housing market: weak.

“The housing market remains in the doldrums with declining sales, inventory and prices,” Khater said in a December 2022 market report. “The declines in sales and deceleration in home prices began swiftly earlier in 2022 but have moderated more recently. While the intensity of weakness is moderating, the market continues to decline and forward leading indicators suggest housing will remain weak throughout the winter.”

Khater touches on the decline in sales and drop in home prices that the U.S. has been experiencing for the past year. The reason for these drops is largely laid at the feet of rising interest rates — a fire stoked by federal prime rate hikes meant to slow nationwide inflation.