On Wednesday, the government reported that inflation eased slightly in April after months of relentless increases but remained near a four-decade high. Consumer prices jumped 8.3% last month from a year ago, just below the 8.5% year-over-year surge in March, which was the highest since 1981.
With inflation at a four-decade high, rising mortgage rates, elevated home prices and tight supply of homes for sale, homeownership has become less attainable, especially for first-time buyers.
Some economists predict that home sales this year could decline as much as 10% from 2021 levels.
The average rate on 15-year, fixed-rate mortgages, popular among those refinancing their homes, dipped to 4.48% from 4.52% last week. That rate was 2.26% a year ago.