Branch² Intelligence
US home prices hit an all-time high as sales slow and mortgage rates rise - AP News
Key takeaway
US home prices hit an all-time high in May 2024, but sales slowed and mortgage rates rose, signaling a mixed housing market.
- Step 1US home prices hit all-time high while mortgage rates rise, reducing affordability and slowing home sales.
- Step 2Slower home sales reduce demand for construction materials, appliances, and related services, impacting US suppliers and potentially UK exporters.
- Step 3Higher US mortgage rates and term premium transmit to UK gilt yields via cointegration, raising SME borrowing costs in the UK.
Source: AP Business (via Google News)
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