--- title: Are people buying houses again? - The Hustle description: If interest rates fall to 5.5%, the market may recover. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/864388489-HS-News-Brief_2023-02-03T015826.025Z.webp --- # Are people buying houses again? ![Mark Dent](https://thehustle.co/wp-content/uploads/2020/04/0-3-1.jpeg?width=48&height=48&name=0-3-1.jpeg) [Mark Dent](https://hs-sbup.thehustle.co/author/mark-dent) Published: April 11, 2023 Updated: October 11, 2023 America’s real estate market has been a horror movie for the past half-decade. ![Are people buying houses again?](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/864388489-HS-News-Brief_2023-02-03T015826.025Z.webp?width=595&height=400&name=864388489-HS-News-Brief_2023-02-03T015826.025Z.webp) - First, limited supply and low interest rates created a seller’s market for the ages, culminating in [absolute mania](https://www.redfin.com/news/housing-market-records-2021/#:~:text=The%20median%20sale%20price%20of,13.2%25%20growth%20for%20affordable%20homes.) in 2021. - Then, interest rates soared, leading to a purgatory state where [nobody is buying homes](https://www.nar.realtor/blogs/economists-outlook/existing-home-sales-fell-for-the-ninth-straight-month-and-decline-5-9-in-october-2022) because they’re too expensive, [nobody is selling them](https://blog.altosresearch.com/housing-inventory-is-declining-again) because they want them to be more expensive, and builders [have less confidence](https://www.npr.org/2022/06/15/1105240933/the-us-needs-more-homes-but-builders-may-be-slowing-construction) in constructing new ones. And now, another plot twist. #### **Oh great, WTF is going on?** Average interest rates [fell ](https://fred.stlouisfed.org/series/MORTGAGE30US)to 6.09% this week, down from 6.95% in November, and the market is (sort of) starting to heat up, [according to *The New York Times*. ](https://www.nytimes.com/2023/02/02/business/mortgage-rates-housing-market.html) - Sales of new homes rose 2.3% between November and December 2022. - But sales of existing homes fell 1.5%, marking the 11th straight monthly decline. A Zillow economist told the *NYT* that while she expects continued interest rate declines to entice more buyers, home prices will likely see minimal decline. Experts suggest an interest rate of 5.5% would be a Goldilocks range — comfortable for sellers and buyers. #### **So is that a happy ending?** Potentially. Except, recession fears may spoil it. A bad economy would likely keep the housing market in limbo, so the real estate industry badly wants the economic [“soft landing”](https://www.reuters.com/markets/us/fed-feeds-wall-streets-soft-landing-hopes-though-recession-fears-still-loom-2023-02-02/) the Fed is attempting. **As for renters: **After huge nationwide increases, several major markets are seeing [slight declines](https://www.realtor.com/news/trends/rent-prices-are-declining-in-these-cities/) in monthly rents. Topics: [Housing And Real Estate](https://hs-sbup.thehustle.co/tag/housing-and-real-estate) ## Follow us on social media prev next - ![Why tech workers are sleeping in expensive boxes](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1611893784-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-brownstone-pods_20231002232126.webp) ### Why tech workers are sleeping in expensive boxes - ![Apartments are getting built at a record clip — it’s too bad they aren’t the right kind](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/503692535-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-Apt-Construction_20230910231429.webp) ### Apartments are getting built at a record clip — it’s too bad they aren’t the right kind - ![Will the Bay Area get a new city?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1030627733-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-houses_20230827234703.webp) ### Will the Bay Area get a new city? - ![Looking for an edge in attracting talent? Give ’em a reasonable place to live](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1955417428-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-housing_20230816223900.webp) ### Looking for an edge in attracting talent? Give ’em a reasonable place to live - ![The answer to sky-high housing prices may also be sky-high](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/952662398-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-zombies_20230808231951.webp) ### The answer to sky-high housing prices may also be sky-high - ![Does your apartment come with junk fees?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1633744937-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-apartmentfees_20230719221212.webp) ### Does your apartment come with junk fees? - ![Can fewer stairs improve housing?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1511365989-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-stairs_20230613212905.webp) ### Can fewer stairs improve housing? - ![Wanna travel cheap? Borrow someone’s house](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/524570425-19-News-Brief_2023-04-20T224100.000Z.webp) ### Wanna travel cheap? Borrow someone’s house - ![Fractional investing is making everyone a landlord… kinda](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1161833518-httpsthe-hustle.hubspot.comhubfsDaily20Newsletter20ImagesMarch2031202023toomanylandlords.webp) ### Fractional investing is making everyone a landlord… kinda - ![As Airbnb grows, so do cleaning fees](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1494684360-HS-News-Brief_2022-04-14T034518.416Z.webp) ### As Airbnb grows, so do cleaning fees Pop up for Subscribe to The Hustle Daily Newsletter Subscribe to The Hustle Daily Newsletter Get the 5-minute news brief keeping 2.5M+ innovators in the loop. Always free. 100% fresh. No bullsh*t. 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