For more than 20 years, real estate prices had not been this high in the United States.
Home prices continue to rise in the United States. According to the refinancing group Freddie Mac, they reach 7.08% over 30 years. Unheard of for over 20 years. Statistics from the Mortgage Associations show that they reached 7.16% last week. A year ago, the rate was 3.14 per cent. In France, rates over 30 years do not exist. According to the latest September figures from Observatoire Crédit Logement CSA, the rate over 15 years was 1.74%, over 20 years 1.88% and over 25 years 1.98%.
Unsurprisingly, US new home sales fell 10.9% in September compared to August and are 17.6% below year-ago sales.
Property prices are too high
This drop in transactions is a new sign of the slowdown in the real estate market, which is suffering from the increase in mortgage interest rates, following the tightening of monetary policy by the US central bank (Fed) in an attempt to fight inflation.
Inflation remains close to a 40-year high of 8.2% year-on-year in September in the US and is reducing household purchasing power, especially as the remedy for this rise in prices is to slow the economy by raising key interest rates. The US Federal Reserve (Fed) is gradually raising interest rates to encourage commercial banks to do the same when making loans.
