Global Uncertainty Spiking Housing Prices, Lowering Interest Rates
Summary
The escalating conflict in Ukraine is being seen by some housing analysts as a partial cause for record-setting home prices and falling interest rates. According to a new report from Redfin, a technology-powered real estate brokerage, the price of a new home soared to an all-time high of $363,975 as the market continued to heat up during the four-week period ending Feb. 27. “The war in Ukraine has rattled the global economy, causing mortgage rates to fall after weeks of increases,” said Redfin Deputy Chief Economist Taylor Marr. “The dip in mortgage rates should buoy homebuying demand temporarily, fueling continued price gains. Intense competition among buyers driven by an extreme shortage of homes for sale is driving prices up unseasonably fast, the report said.