US home prices slow down
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Housing market eventually stabilizes due to declining mortgage rates, slowing increase in home prices
WASHINGTON (Web Desk) - Housing market eventually stabilizes, albeit at reduced levels, thanks to declining mortgage rates and a slowing increase in home prices.
The increase of single-family house prices in the US slowed down even further in November, which in combination with low mortgage rates may help prevent the housing sector from entering a worse recession.
Following a 10.7 percent gain in October, the S&P CoreLogic Case Shiller national house price index which includes all nine US census divisions climbed 9.2 percent year over year in November. The Covid-19 epidemic caused a spike in distant employment which stimulated the housing market and raised prices to all-time highs.
The housing market has entered a recession as a result of the Federal Reserve s quickest interest rate hike cycle since the 1980s.
The housing market may eventually stabilise, albeit at reduced levels, thanks to declining mortgage rates and a slowing increase in home prices.
The rate on a 30-year fixed mortgage decreased slightly last week to an average 6.13 percent which is the lowest level since mid-September, according to information from home financing company Freddie Mac. New US house sales decline in 2022 as mortgage rates rise
Rate fell from 6.15 percent in the previous week and from an early-quarter average of 7.08 percent which was the highest since 2002. However, it is still much higher than the 3.5 percent average for the same period previous year.
