The American housing market may fall even further as rising mortgage rates suppress demand and the stock of new homes begins to grow, according to Moody’s.
Home prices are expected to tumble between 5 and 10 percent over the next two years, Moody’s economist, Matthew Walsh, told Yahoo Finance in an April 18 interview.
Walsh noted a spike in housing prices over the past decade. But mortgage rates have recently surged from around 3 percent at the end of 2021 to well over 6 percent today.
Up until early last year, the U.S. housing market had expanded greatly since the home loan crisis that helped spark the 2008 recession, partially due to an easy monetary policy and almost zero interest rates….