U.S. Housing Market Adapts to Higher Rates as Affordability Pressures Persist

U.S. Housing Market Adapts to Higher Rates as Affordability Pressures Persist

USA: The housing market has not experienced the expected post-rate-hike reset, according to a report. Higher mortgage rates have cooled demand and increased supply, but they have not delivered significant price relief, leaving affordability under strain. Analysts suggest the market has instead adjusted to a new normal of higher borrowing costs, limited supply balance and persistently elevated prices. Mortgage rates, which peaked at 7.8% and now sit near 6.1%, continue to shape buyer behaviour. A key challenge remains the “lock-in effect,” where homeowners stay in place due to low historic rates, limiting housing turnover and market fluidity.

Source: KBDN