After the fastest rise in mortgage rates for any four-month period since 1981, hot markets such as Austin and Riverside, Calif., are suddenly slowing. Buyers who once had to make on-the-spot offers now have time to shop and even negotiate. And some sellers are doing something unthinkable just months ago: slashing prices.

More than 100 housing experts surveyed by Zillow generally agreed that housing prices won't face a big downturn. But a mild recession may be in play later this year or in 2023.