The boom in housing market activity started to moderate in February, with existing home sales recording a substantial drop. Record low inventory will be constraining activity, as will worsening affordability. Looking ahead, a further rise in mortgage interest rates to around 4.0% by the end of the year will help bring sales back toward their pre-COVID trend. We expect sales will end the year at around 5.7m annualised.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services