US home prices to drop by 20% as global housing collapse threatens

Posted on March 14, 2023   |  

The exponential growth in the US and German housing markets such as home-price-to-rent ratio and real house prices indicate an affordability crisis. 

This poses a vulnerability to the global outlook because of the size of those nations’ economies and influential cross-border financial spillovers.

The average 30-year mortgage rate reached 6.5% last week, an increase of 3.89% during the same week one year earlier while a modest housing correction remains the baseline scenario.

Growing interest mortgage rates have initiated a significant slowdown in the US housing market over the last year; existing-home sales have declined for 12 straight months.