The housing market downturn will send home prices 5% lower and help push the economy into a recession

• US home prices will likely decline 5% year over year in the second half of 2023, Vanguard said.
• Strategists said the rate-sensitive housing sector will be an early indicator of the Fed's tightening.
• "The housing downturn is part of the reason why we view a mild US recession in 2023 as most likely."

The housing market will weaken further as home prices see a 5% decline year-over-year in the second half of 2023, according to Vanguard.