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Robert ShillerWendy Carlson/Getty Images
The decade-long rally in home prices could end when the Fed wraps up its tightening cycle, Robert Shiller said.
He told CNBC that earlier rate hikes pushed people to buy homes before borrowing costs rose even further.
“So that’s been a positive influence on the market, but it’s coming to an end.”
More than 10 years of home price gains could soon come to a close once the Federal Reserve’s tightening cycle ends, Yale economist Robert Shiller told CNBC.
Since early 2012, the S&P CoreLogic Case-Shiller Index of home prices has climbed steadily. While it peaked in June 2022 and went on a downturn, it resumed its upward trajectory in January.
That’s as the past year’s Fed rate hikes boosted mortgage rates, keeping existing homes off the market, but also adding to homebuyer demand, Shiller said Thursday.
“I think the fear of interest rate increases has influenced people’s thinking,” he said. “It’s not just homeowners. It’s new buyers who wanted to get in…
2023-07-21 19:59:07
Article from finance.yahoo.com
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