Despite the fact that the supply deficit has decreased and the number of active listings has peaked over the past decade, mortgage rates, hovering around 6.5%, continue to reduce demand.
This has led to the fact that housing prices, according to the consolidated S&P CoreLogic Case-Shiller indices for 20 urban agglomerations, have been declining for four months in a row for the first time since February 2023.
Expectations that the US Federal Reserve will cut rates, starting with a 25 basis point cut on Wednesday, followed by at least one more point this year and several more in 2026, had little effect on mortgage rates.
According to the median estimates of 27 real estate analysts who participated in the Reuters survey, which was conducted from September 2 to September 16, U.S. home prices will rise by only 2.1% this year and 1.3% in 2026, well below the projected 3.5% growth (over two years) inthe July survey.
Source: Reuters
