Housing Market Squeezed From Both Sides As Rates Rise and Inventory Falls, Leaving Sacramento Prices High but Volume Low

Federal Reserve interest rate hikes intended to slow inflation and cool the housing market have led to a sharp rise in mortgage rates, making homebuying less affordable.

The lack of housing inventory is compounding the affordability crisis, as potential sellers are reluctant to give up low mortgage rates.

Sacramento home prices remain high despite reduced demand, creating an unprecedented market with low supply, low demand, and continued high prices.

Creative solutions like adjustable rate mortgages and sellers offering concessions have emerged, but housing remains largely unaffordable.

Unlike past housing market corrections, this one involves both low supply and low demand, meaning prices stay high even as volume drops sharply.