US housing market in the worst period in 11 years

US house prices fell by 0.7% in August. This was the first consecutive two-month decline since 2011, following the 0.6% drop in July. On an annual basis, the rate of increase in prices was 11.9%.

In the US, housing prices have been flat since 2011 due to low lending and mortgages, but during the pandemic, housing prices have risen rapidly as interest rates fell further, banks prepared campaigns and most importantly, demand increased. In the July-January 2020 period, monthly increases approached 2%. House prices increased during the pandemic and continued to rise in 2021 due to inflation. In 2022, house prices in the US rose by close to 20% as the war further boosted inflation. The annual increase in house prices, which was 19.3% in March, was 11.9% in August. Declining demand and rising interest rates are at the heart of the decline in house prices. The 20-year high in market interest rates led to a sharp decline in housing loan applications. Prices have been declining for 6 months due to decreasing demand and interest rates. Source: investing.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!