Chief Economist and Senior VP of Research, National Association of Realtors
Existing-home sales have fallen by 1.7% to a 4.06 million annual pace, while prices reach record highs for July. The 30-year fixed rate sits at about 6.69%, and mortgage-rate trends are weighing on buyers as supply remains tight.
July saw only modest 0.1% month-on-month growth in UK house prices, with annual growth slowing to 1.8%. Affordability remains a challenge as mortgage rates rise amid geopolitical tensions. Northern Ireland leads price gains while the south and London lag. The Bank of England cautions inflation pressures could rise if the Iran conflict persists.
The United States has reached a historic debt level, driven by Iran tensions and tariffs. Higher debt issuance is lifting bond yields, pushing mortgage rates higher and increasing monthly payments. Homebuyers face a slower market as rates stay elevated amid near-record home prices, while employment remains strong and demand could rebound if rates ease.
Surging mortgage rates have led to a slowdown in homebuying activity as inventories rise. Across multiple outlets, data show higher rates pushing buyers out of the market, while prices stay elevated.
Central to the economy, housing remains hampered by elevated mortgage costs and construction costs. The Fed has kept rates high to curb inflation, hurting builders and buyers alike. Starts and sales trend down, sentiment sinks, while supply remains tight and affordability worsens.