CNN’s article What a Real Estate Bubble Would Mean for Homebuyers featured co-founder and CEO Mike Maher as an expert voice. Maher touched on the impact of rising interest rates, and what it can mean for the future of the 2022 housing market.
Maher’s contribution:
“Rising interest rates from 3% to nearly 5% over four months, that has helped push some competition to the sidelines,” said Mike Maher, co-founder and CEO of Houwzer, a real estate brokerage.
Still, he added, “it is going to be really hard for this bubble to burst any time soon because demand is outpacing supply and even though rates are rising, money continues to be cheap by historical standards.”
One potential benefit of rising mortgage rates, he said, is that the inventory picture may improve.
“What I hope happens is over the next 12 to 24 months is that rising interest rates push some buyers to the sidelines to flatten home price appreciation a bit. Then, potentially, homeowners would move their homes into the market,” he said.