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What to Know About the Housing Market

New residential construction in the U.S. declined in June, according to U.S. Census Bureau data. Here are four other things to know about the housing market, according to The Hill:

Home prices are up: Housing prices are rising again after falling in the second half of last year, largely due to limited supply.

  • One source “said there are roughly half as many homes for sale as there were in 2019, and even fewer listed for $300,000 or lower. Owners who purchased homes when interest rates were near record lows are not eager to sell.”

Mortgage rates remain high: Mortgage rates skyrocketed as the Federal Reserve raised interest rates to combat inflation, but “demand [has] rebounded as rates trended downward from their peak above 7 percent last fall…”

  • Last week, the average 30-year fixed-rate mortgage hit its highest level—6.97%—since November 2022.

Home prices are increasing inflation: The consumer price index data from last week showed the slowest annual rise in inflation since 2021—at 3%. However, housing prices “fuel[ed] more than 70 percent of price growth in June.”

The Federal Reserve could soon raise rates again: Though the central bank paused its interest-rate hikes in June following 10 consecutive rate increases, officials have indicated they are likely to raise rates again this month.

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