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US House Prices Are Likely to Drop as Rates Rise, Capital Economics Says

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Housing Demand to Stay Strong, Says

US house prices are likely to fall as mortgage rates exceeding 6% crimp affordability for the average buyer, according to Capital Economics.

Property prices could contract an annual 5% by the middle of next year, Matthew Pointon, senior property economist, said in a research note Monday. He’d previously projected no change in values by that time.