On the back of a rise in mortgage rates to above 7%, home purchase applications took another step down in October. That points to further declines in home sales in the coming months. With mortgage affordability at its worst since 1985, borrowers are also taking out smaller loans. This will limit the amount buyers can bid for a home and supports our view that house prices will continue to fall over the next year.
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