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The median selling price of a U.S. home soared past $400,000 for the first time in May, the National Association of Realtors reported Tuesday. That news came just days after the 30-year fixed-rate mortgage rate hit 5.78%, the highest since the Great Recession.

Still, personal finance expert Suze Orman thinks the housing market holds promise for U.S. consumers even though she says "the tables have turned a little."

In a new interview with Yahoo Finance's editor-in-chef, Andy Serwer, Orman dispensed advice for homebuyers and renters on how to navigate a tough environment with both soaring mortgage rates and skyrocketing rents. Orman encourages renters to be in the best financial shape possible, so they can afford inflated costs and potentially negotiate lower leases. And she advises home hunters to be realistic about whether they can afford higher mortgage rates, property taxes, and insurance.

"Just see the entire picture before you jump in," she said. "I think it's a little different than it was a year or two ago." In general, though, Orman suggests a home is still a wise investment.

“I don’t think you’re going to see homes go down really in value. You know, the truth is, real estate always does pretty well during a recession,” Orman told Yahoo Finance on June 20. "..If you own real estate, I don't think you're going to see it go down dramatically. Maybe you'll only see it go up 5% or 7% a year."

Still, many experts are spotting signals that the housing market is cooling. Sales of previously owned homes dropped for the fourth straight month in May as interest rates creep up. This forecast came a week before the Federal Reserve voted to hike short-term interest rates by 75 basis points on Wednesday, the steepest hike since 1994.

Speaking to Yahoo Finance, Orman acknowledged that the housing market is changing. Specifically, she said buyers won't feel as rushed to bid for a house right away to beat out competing...

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