Mortgage rates have fallen but are still high, not enough to lower home prices. Capital Economics predicts a 5% increase in home prices this year due to tight supply and increased demand. Affordability may improve as mortgage payments decrease, but supply will remain low. Existing home sales are expected to increase, but new home sales and single-family home starts will still be below previous levels.
Original post here: Those falling mortgage rates don’t mean falling home prices, Capital Economics says, revising its forecast up for the year
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