Northern IL Home Search- Local Housing Predictions for the Next 12 Months: Inventory, Demand, and Pricing Outlook (cnythzl/Getty Images/iStockphoto)The housing market over the next 12 months is expected to stay in a “rebalancing phase,” shaped by elevated mortgage rates, gradually improving inventory, and steady but highly selective buyer demand. Home Prices: Slower Growth, Not a CrashAfter several years of rapid appreciation, home price growth is projected to moderate significantly. Mortgage Rates: Elevated but StabilizingMortgage rates remain one of the most influential factors shaping the housing market. Data from the Freddie Mac Primary Mortgage Market Survey shows that 30-year fixed mortgage rates have generally hovered in the mid-6% range in recent periods. Many markets still face “lock-in effects,” where homeowners hesitate to sell due to significantly lower existing mortgage rates.