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2025-10-28 21:08:22
[U.S. Housing Market Under Pressure from High Interest Rates: Real Wealth Continues to Shrink] ⑴ Year-over-year home price growth in the United States slowed further in August, with the S&P/Case-Shiller National Home Price Index showing a 1.5% increase over the previous 12 months, the slowest pace of growth in over two years. ⑵ Year-over-year home price growth has fallen below inflation for the fourth consecutive month, suggesting that homeowners' real wealth is shrinking, even as nominal prices continue to rise slightly. ⑶ Mortgage rates exceeding 6.5% continue to suppress buyer demand, leading to a weak summer market during what should be the peak trading season. ⑷ After the pandemic-induced price surge, the real estate market is entering a broader rebalancing phase, with high financing costs acting as a primary constraint. ⑸ Current home price growth has continued to decline from July's 1.6%, reflecting the continued cooling effect of the monetary policy tightening cycle on the real estate market.
