The residential real estate market has held up well year to date. While many real estate stocks have fallen as much as 60%, average home prices have remained solid -- so far. But the question is: How long will they hold up?

Prior to recent moves by the Federal Reserve to raise interest rates and tame inflation, housing inventory stats showed that there were far more buyers than sellers in the market. Let's take a look at how that equation has flipped, starting with interest rates.

Mortgage rates were under 3% for most of 2021 and stayed below 4% until the Fed increased the federal funds rate. Mortgage rates responded to that move by reaching a national average as high as 5.80%. The 30-year mortgage payment on $500,000 mortgage is $2,437 with a 3% interest rate and $3,262 with a 5.8% interest rate.

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Source Fool.com