U.S. home prices will rise relatively modestly this year and next despite tight supply and expected U.S. Federal Reserve interest rate cuts, according to...
BENGALURU - U.S. home prices will rise relatively modestly this year and next despite tight supply and expected U.S. Federal Reserve interest rate cuts, according to housing analysts polled by Reuters who said purchasing affordability will improve but would remain strained.
That, coupled with expectations the Fed will start cutting rates in September and by a total of 75 bps by year-end, will help underpin a market already constrained by a lack of adequate supply. "For the next few months, the U.S. housing market will continue to stabilize now mortgage rates are starting to decline in anticipation of Fed rate cuts ... but if prices continue to rise, it's going to be tough to see a material improvement in affordability."The 30-year mortgage rate, which averaged nearly 7% through 2023, fell to a 16-month low of 6.44% last week. It is forecast to average 6.7% in 2024, before declining to 6.0% next year and 5.9% in 2026, survey medians showed.
Relief from lower interest rates will, however, likely dampen sticky rental inflation in coming months, analysts in the survey said. Autonomous Underwater Vehicles Market Forecast and Competitive Landscape Analysis, 2024-2029 - Discover Key Business Opportunities by Technology, Type, Shape, Speed, Payload Type, Application, and Region
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