New and existing home sales fell again in September, as higher mortgage interest rates weighed on demand. But those homes that are selling are doing so quickly, and the strong labour market argues against a severe crash in activity. Indeed, measures of home buying confidence ticked-up in September. Slowing sales in the home owner market have supported rental demand, and rental vacancy rates are low by past standards. That is keeping rents rising. Coupled with slowing house price growth, that will help rental yields rise modestly over the next couple of years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services