House prices had another strong month in August, with annual growth on the FHFA measure surging to 8.1%, a 14-year high. Record low mortgage rates have given a boost to housing demand, and record low inventory means buyers are having to compete aggressively to secure a home. Growth is set to rise further this year, but beyond that mortgage rates will not fall much further, and tighter lending standards coupled with elevated valuations mean growth will slow to around 2% by the end of next year.
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