US Housing Markets Cooling Off

US National Home Price NSA Index has gone up 45% from January 2020 to June 2022.  Since Fed increased interest rates seven times 2022, the average 30-year fixed rate mortgage became 6-7%. Sales of existing homes have fallen (Timiraos, 2022, December 25).

Particularly, according to US Census Bureau data, US household percentage of the entire population has been steady and entire population over age 16 seems to grow very low or lower than before the Pandemic (see figure 5). This offers some background picture of house ownerships (FEDS notes, 2022, May 06). As single ownership increased during the Pandemic, this may be related to the behavioral change. For example, professionals working remotely may have purchased a residential place.

Recent Wall Street Journal said that some mortgage banker warned that the full effects of high interest rate have yet to be felt (Timiraos, 2022, December 25).