Housing Market Prices Rise Strongly Despite Supply Gains
U.S. single-family house prices rose 0.4% in December, driven by a strong increase in the Middle Atlantic region, despite improving supply and elevated mortgage rates eroding affordability. The average rate on the popular 30-year fixed mortgage hovered just under 7% in December, further squeezing buyer power. House prices have now risen for seven consecutive months, with annual gains ranging from 4.2% to 5.6%.
- The rising tide of housing market prices underscores the resilience of the U.S. real estate sector, which has largely shrugged off concerns about a potential downturn.
- How will policymakers and regulators respond to the continued erosion of affordability in the housing market, particularly for low- and moderate-income households?