economy
How the Iran war could crush the U.S. housing recovery, and it's not just about mortgage rates
A combination of higher mortgage rates and economic uncertainty are reversing what was expected to be a recovery year in the housing market.
TL;DR
- Mortgage rates have risen significantly since the war with Iran began, impacting affordability.
- Higher rates and economic uncertainty are reversing expected improvements in the housing market.
- Home sales forecasts have been lowered, with potential declines if the situation persists.
- The new construction market is affected, with builders like KB Home lowering full-year forecasts.
- Buyer contract cancellations are at their highest rate since 2017.
- There are significantly more sellers than buyers in the market.