Higher Rates and Low Inventory Keep Housing Market Challenging for Buyers

Higher interest rates raise borrowing costs for homebuyers and limit housing inventory, contributing to higher home prices.

Higher rates discourage homeowners from listing homes, further squeezing inventory.

Lack of inventory elevates prices, making buying harder for potential first-time buyers.

New home sales are trending up but can't fully offset broader housing slowdown.

Fed can hold rates steady if economic data doesn't sharply turn, after significant hikes and balance sheet reduction.