by
Global Research Analyst

Key takeaways

  • U.S. home prices have continued to appreciate as low inventory has limited sales of new and existing homes.
  • Rising mortgage rates are having a negative effect on housing affordability. This should slow demand for homes in the near term.

What it may mean for investors

  • The housing market likely will make a limited contribution to U.S. economic growth in the near term. Many homebuyers will pay more through higher housing prices and financing costs. Homeowners may not sell their homes in the face of higher mortgage rates and fewer market alternatives.

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