Source: Fortune—
High housing prices have been seen as a key inflationary driver over the past few months, and the direction that market takes now could be yet another indicator of where the economy is heading.
The U.S. housing market is in a clear cooling-off period, and has likely been for months. When the Federal Reserve began raising interest rates to combat inflation last spring, the housing market was one of the first industries to react. Monthly payments are critical in housing, and the Fed’s policy caused mortgage rates to soar, reducing demand and slowing the growth in sky-high pandemic-era home prices.
