Skyrocketing mortgage rates and inflation in the United States have caused the housing market to tumble in June, allowing historically high home prices to stabilize and unit stock to grow, according to a report from mortgage data analytics firm Black Knight.
Home Prices Fell for the First Time
In June, rising mortgage rates and inflation led to a cooling of home prices—CNBC reported. With a glut of new homes on the market during and after the pandemic, housing prices remained high even as supply increased. Even during the recession of 2007-09, when home prices crashed dramatically, the strongest monthly slowdown was just 1.19 percentage points—which is not very strong at all. The housing market remains strong nationally, but homeowners have been hit hard by rising mortgage rates.The rise in housing prices rapidly slowed in June, according to the report, though prices are higher than they were 12 months ago.
