The real estate market tends to lag behind the rest. Unlike stocks and bonds, it’s too hard to qualify if a good deal went bad while in process, unless a low comp out of nowhere pops up across the street.
Interest rates have the biggest impact, so we’ll see how they end up over the next few days, but last week they were around 4.5% for conforming 30-year fixed-rate mortgages. If there was a big spike to 5.0%, we’d survive, but if mortgage rates got into the mid-5s it would be troublesome – we’d see cancellations.
We are a nation of gawkers – expect that there will be a lot of standing around this week, wondering what to do. It would be impressive to see sellers react with lower pricing, but it’ll be more likely that they’ll stay numb.