US House Prices Are Likely to Drop as Rates Rise, Capital Economics Says

(Bloomberg) — US house prices are likely to fall as mortgage rates exceeding 6% crimp affordability for the average buyer, according to Capital Economics.

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Property prices could contract an annual 5% by the middle of next year, Matthew Pointon, senior property economist, said in a research note Monday. He’d previously projected no change in values by that time.

An average household looking to buy a home for the median price will now have to put more than a quarter of…

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