Housing Market Hits a Roadblock: Prices Soar Amid Slowing Sales
Sales of new U.S. single-family homes fell more than expected in January as persistently high mortgage rates sidelined potential buyers, indicating that housing market and overall economic activity slowed early in the first quarter. The steep decline in new home sales also likely reflected the impact of snowstorms and extremely cold weather in much of the country last month. The median house price increased to more than a two-year high in January, even as supply rose to levels last seen at the end of 2007.
- As the housing market continues to grapple with rising prices and reduced affordability, policymakers must consider whether their efforts to address inflation have come at too great a cost to accessibility and community stability.
- What strategies will government agencies and private lenders employ to mitigate the negative impacts of high mortgage rates on low-income families and communities of color, who are disproportionately affected by housing market fluctuations?