Americans are starting to see an end for the relentless rise in US home prices. Consumers surveyed last month said they expect home prices to rise by about 3.5% in the coming year, down from an expected change of 4.4% a month earlier and 6% at the start of 2022, data from the New York Federal Reserve showed yesterday, Bloomberg News reported. The drop was reflected across education and income groups, marking the third-straight decline and the lowest expected growth rate since November 2020. Home prices have surged over the last couple of years, fueled through much of that time by ultra-low mortgage rates and a pandemic-fueled rush for more spacious properties. While price increases remain extremely high, recent data have shown a slight deceleration as higher borrowing costs deter prospective buyers and inventory picks up. The average on a 30-year loan is hovering just under 5%, Freddie Mac data show, up from roughly 3% at the end of last year.
