Rents and home prices are climbing at a slower pace, new data show

Rents and home prices are climbing at a slower pace, new data show

Comment

The booming U.S. housing market, which has made homeowners rich in recent years while draining renters and first-time buyers, shows signs of slowing, according to new data.

Rents and house prices continue to rise, but at a more moderate pace, as inflation and rising mortgage rates have dampened demand. In June, the average house price jumped 17.3%, compared to the 19.3% increase recorded in May, according data analytics company Black Knight. That full two percentage points is “the biggest one-month downturn on record since at least the 1970s,” Black Knight Chairman Ben Graboske said.

Rent prices followed a similar trajectory in the second quarter, with the average monthly payment for an apartment rising 9.4% in the three months ended June 30, year-over-year, according to the real estate data company CoStar, cited by Wall Street. Log. This compares to increases of more than 11% recorded in the previous two quarters.

The cooling housing market reflects weakness in the broader economy, as potential buyers find themselves unable or unwilling to cope with rising inflation, which is at its highest level in 40 years.

Mortgage rates have risen steadily since the Federal Reserve began raising benchmark interest rates in March, as part of its plan to contain soaring costs by making borrowing more expensive. This dramatically increased the monthly payment a homebuyer would pay for a given property, making everything less affordable. At the same time, a struggling stock market has squeezed the resources of many homebuyers, making it difficult to save for a down payment.

This is a developing story and will be updated.

Leave a Reply

Your email address will not be published.