1. United States: High Mortgage Rates Keep Buyers Sidelined as Inventory Expands
The Story: Rising inflation expectations and bond market volatility pushed U.S. mortgage rates above 7.4%–7.5%, defying earlier expectations of sustained rate cuts. This sharp borrowing-cost surge has chilled purchase applications down to near-winter lows, leaving active listings on the market longer and steadily expanding available housing supply. Notably, aggressive incentives and rate buydowns from homebuilders have made brand-new homes 2% cheaper on average than existing inventory—marking the first time in 52 years that new residential construction offers a better baseline valuation than pre-owned homes.
