Slumping demand and surging mortgage rates are likely to lead to the slowest period for housing sales in 30 years, according to Goldman Sachs.
Lurking over all the housing market, though, has been the surge in mortgage rates that have come along with the Federal Reserve's efforts to bring down inflation .
Mortgage rates have risen in tandem, rocketing from around 3.8% when the Fed started tightening to more than 7.6% nationally now, according to Freddie Mac data.
"We expect this 'lock-in' effect to push existing home sales even lower in the coming months and to limit any rebound next year," Walker wrote.
After a robust period in the third quarter, Goldman and most of Wall Street expects GDP growth to slow considerably.
Persons:
Goldman Sachs, Goldman, Ronnie Walker, Freddie Mac, Walker
Organizations:
Federal, Fed
Locations:
U.S