A mild recession could actually be good for the housing market

• Wall Street firms have eased recession calls recently, but a mild downturn may actually be good for the housing market.
• A recession would likely push the Fed to ease monetary policy, and mortgage rates would fall.
• A mild recession could also bring down home prices as more supply becomes available.

A downturn typically hurts the economy across the board, but a mild recession could actually alleviate some of the recent pain Americans have been feeling in the historically expensive, competitive housing market.

For many Americans, buying a home hasn’t been affordable since the pandemic. With mortgage rates hovering near 7%, current owners are unwilling to part ways with the low rates they secured previously, exacerbating the home inventory shortage