The  2/6  BIS - Central bankers' speeches  combination of soaring demand for housing and limited supply until earlier this year meant the housing market had substantial excess demand, which was reflected in substantial increases in housing costs. But now imbalances in the owner-occupied market have started to shift.
Due to the Fed's actual and anticipated tightening of monetary policy, mortgage rates have increased from less than 3 percent at the end of last year to nearly 7 percent recently. Higher borrowing costs have made it more expensive for households to buy homes, whether they are first-time buyers or trading their current home for a different one.