The latest drop in mortgage interest rates has not boosted housing market activity, which is being constrained by a severe lack of inventory. With housing starts faltering, we doubt inventory levels will improve much this year, so home sales will see little growth. Instead, prices are set to be driven up by around 6%. Rising interest rates and an increase in single-family starts should help inventory levels recover in 2018, taking some of the pressure off prices.
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