The US will probably avoid a recession. That might be bad news for homebuyers.

• The US economy may avoid a recession after all. That’s not great for sidelined homebuyers.
• A recession would likely cause interest rates to fall, bringing down mortgage rates and adding housing inventory. 
• High borrowing costs and elevated prices are the new normal for now, one real estate economist said.

The US will probably avoid a recession after all – and that could be bad news for buyers who are being priced out of a frustratingly unaffordable housing market, according to National Association of Realtors chief economist Lawrence Yun.

The real estate economist saw mortgage rates and home prices staying flat—which is to say, elevated—through the rest of 2023, with the the 30-year-fixed mortgage rate easing to just 6%-6.5% by year-end.