Property

U.S. housing crisis: Could higher rates actually mean fewer homes?

Rising rates reduce housing inventory, increasing pressure on prices, warns Joe Ciolli from Business Insider


Rising interest rates are creating pressure beyond mortgage affordability, with higher borrowing costs also discouraging construction and weighing on consumer spending.

Joe Ciolli from Business Insider says weaker demand and reduced incentives for builders could result in fewer new homes entering the market.

With housing supply already constrained, a slowdown in construction could keep prices elevated and make it harder for buyers waiting for conditions to improve.

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