There’s a lot of talk about a recession lately and how odds of one are rising. If you’re wondering what that means for the housing market, here’s what the data tells us.
A Recession Doesn’t Mean Falling Prices
Home price change during the last 6 recessions.
| Recession Year | Home Price Change (%) |
|---|---|
| 1980 | +6.1% |
| 1981 | +3.5% |
| 1991 | -1.9% |
| 2001 | +6.6% |
| 2008 | -19.7% |
| 2020 | +6.0% |
While you may remember what happened to prices in 2008, that's not the norm. Prices only declined significantly one time in the past 6 recessions.
A Recession Means Falling Mortgage Rates
Mortgage rate changes during the last 6 recessions.
| Recession Year | Mortgage Rate Change (%) |
|---|---|
| 1980 | -4.25% |
| 1981 | -5.00% |
| 1991 | -2.25% |
| 2001 | -0.63% |
| 2008 | -1.13% |
| 2020 | -1.00% |
In each recession since 1980, mortgage rates have come down. But don’t expect the return of 3% rates.
If you have questions about buying or selling a home in today's market, connect with a real estate agent.
Sources: Cotality (formerly CoreLogic), Freddie Mac, Mortgage Specialists
Some Highlights
- There's a lot of talk about a recession lately and how the odds of one are rising. If you're wondering what that means for the housing market, here's what the data tells us.
- While you may remember the price crash in 2008, that's not the norm. Looking back all the way to 1980, home prices usually rise and mortgage rates tend to fall.
- If you have questions about buying or selling a home in today's market, connect with a real estate agent.
