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Pain in the US housing market

Nov 18, 2022

The price of a 30 year fixed rate US mortgage has increased from 3.1% to 6.6% this year ( source: Freddy Mac). This has an immediate effect on the housing market as new houses become less affordable and developers are forced to unload their recent constructions at steep discounts to save their balance sheets. It also means less new construction going forward. Pending home sales are already down 30% y-o-y. We expect US residential house prices fall sharply over the coming months.

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