Skyrocketing interest rates through most of 2022 put some much-needed pressure on the housing market after home prices hit record highs across the nation. However, since December, mortgage rates have been on a steady decline through the beginning of February. Even so, many economists remain mixed about whether home prices will continue to decelerate throughout 2023—or even drop at all.

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.

Bump Clause is one of those real estate terms that you may come across in a potential listing and think that it indicates a risk. Read more to learn more about them and how you may benefit as a buyer or seller.