U.S. home prices will rise steadily over the next few years amid prospects for modest interest rate cuts by the Federal Reserve and as many existing homeowners keep their doors closed to selling, according to property experts polled by Reuters.
As aggressive Fed rate hikes have sharply pushed up the cost of standard 30-year mortgages to more than 7%, existing homeowners have held on to rock-bottom rates from the pandemic, some below 3%, limiting the supply of homes for sale.
That, combined with relentless demand for a place to live and a strong economy, cushioned a brief correction in the market. Average house prices soared around 50% during the pandemic and again hit a new record last year.
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