In the United States, interest rates for all mortgage types started to increase in 2021. This was due to the Federal Reserve introducing a series of hikes in the federal funds rate to contain the rising inflation. In the fourth quarter of 2024, the 30-year fixed rate rose slightly, to **** percent. Despite the increase, the rate remained below the peak of **** percent in the same quarter a year ago. Why have U.S. home sales decreased? Cheaper mortgages normally encourage consumers to buy homes, while higher borrowing costs have the opposite effect. As interest rates increased in 2022, the number of existing homes sold plummeted. Soaring house prices over the past 10 years have further affected housing affordability. Between 2013 and 2023, the median price of an existing single-family home risen by about ** percent. On the other hand, the median weekly earnings have risen much slower. Comparing mortgage terms and rates Between 2008 and 2023, the average rate on a 15-year fixed-rate mortgage in the United States stood between **** and **** percent. Over the same period, a 30-year mortgage term averaged a fixed-rate of between **** and **** percent. Rates on 15-year loan terms are lower to encourage a quicker repayment, which helps to improve a homeowner’s equity.

This paper shows that a macro model with segmented financial markets can generate sizable movements in housing prices in response to changes in credit conditions. We establish theoretically that reductions in mortgage rates always have a positive effect on prices, whereas the relaxation of loan-to-value constraints has ambiguous effects. A quantitative version of the model under perfect foresight accounts for about one-half of the observed price increase in the United States in the 2000s. When we include shocks to expectations about housing finance conditions, the model's ability to match house values improves significantly. The framework reconciles the observed disconnect between house prices and rents since, in general equilibrium, financial shocks can decrease rents and increase prices.

House prices grew year-on-year in most states in the U.S. in the first quarter of 2025. Hawaii was the only exception, with a decline of **** percent. The annual appreciation for single-family housing in the U.S. was **** percent, while in Rhode Island—the state where homes appreciated the most—the increase was ******percent. How have home prices developed in recent years? House price growth in the U.S. has been going strong for years. In 2025, the median sales price of a single-family home exceeded ******* U.S. dollars, up from ******* U.S. dollars five years ago. One of the factors driving house prices was the cost of credit. The record-low federal funds effective rate allowed mortgage lenders to set mortgage interest rates as low as *** percent. With interest rates on the rise, home buying has also slowed, causing fluctuations in house prices. Why are house prices growing? Many markets in the U.S. are overheated because supply has not been able to keep up with demand. How many homes enter the housing market depends on the construction output, whereas the availability of existing homes for purchase depends on many other factors, such as the willingness of owners to sell. Furthermore, growing investor appetite in the housing sector means that prospective homebuyers have some extra competition to worry about. In certain metros, for example, the share of homes bought by investors exceeded ** percent in 2025.

Snapshot img { margin: 10px !important; } About Housing Mortgage Mortgage is a debt instrument that the borrower is obliged to pay back with a fixed set of payments and is secured by the collateral of a specified real estate property. Mortgages enable individuals and businesses to make large real estate purchases without paying the entire value of the purchase in one go. Borrowers repay the loan along with interest over a period of many years until they eventually own the property free and clear. However, if borrowers stop paying the mortgage, the lender can foreclose and may evict the property’s owner and sell it, using the income from the sale to clear the mortgage debt. In a fixed-rate mortgage system, borrowers pay the same interest rate for the life of the loan. Most fixed-rate mortgages have a 15 or 30-year term. There is no influence on borrowers’ payment if market interest rates rise. However, if market interest rates decline significantly, borrowers may be able to secure that lower rate by means of refinancing the mortgage. TechNavio's analysts forecast the Housing Mortgage market in the US to grow at a CAGR of 1.75 percent over the period 2013-2018.Covered in this Report This report covers the present scenario and the growth prospects of the Housing Mortgage market in the US for the period 2014-2018. To calculate the market size, the report considers the loan volume of primary housing mortgage banks, credit unions, and financial institutions. It takes into consideration the various product segments such as Home Purchase, Home Improvement, and Refinancing. The report mentions the role played by Federal Government by the way of government-sponsored enterprises operating in the system. TechNavio's report, the Housing Mortgage Market in the US 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the US; it also covers the landscape of the Housing Mortgage market in the US and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.Key Regions • USKey Vendors • Bank of America • Citigroup • JPMorgan Chase • U.S. Bancorp • Wells FargoOther Prominent Vendors • Ally Financial • Capital One Financial • Fifth Third Bancorp • Flagstar Bank, FSB • SunTrust Banks • Quicken Loans • Regions FinancialMarket Driver • Improved Demand for Home Loans • For a full, detailed list, view our reportMarket Challenge • Shrinking Lending Capacity • For a full, detailed list, view our reportMarket Trend • Less Incidence of Foreclosures • For a full, detailed list, view our reportKey Questions Answered in this Report • What will the market size be in 2018 and what will the growth rate be? • What are the key market trends? • What is driving this market? • What are the challenges to market growth? • Who are the key vendors in this market space? • What are the market opportunities and threats faced by the key vendors? • What are the strengths and weaknesses of the key vendors?

In May 29, 2019, FHFA published its final Monthly Interest Rate Survey (MIRS), due to dwindling participation by financial institutions. MIRS had provided information on a monthly basis on interest rates, loan terms, and house prices by property type (all, new, previously occupied); by loan type (fixed- or adjustable-rate), and by lender type (savings associations, mortgage companies, commercial banks and savings banks); as well as information on 15-year and 30-year, fixed-rate loans. Additionally, MIRS provided quarterly information on conventional loans by major metropolitan area and by Federal Home Loan Bank district, and was used to compile FHFA’s monthly adjustable-rate mortgage index entitled the “National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders,” also known as the ARM Index.

30 Year Mortgage Rate in the United States decreased to 6.56 percent in August 28 from 6.58 percent in the previous week. This dataset includes a chart with historical data for the United States 30 Year Mortgage Rate.

Exploiting variation in the timing of resets of adjustable-rate mortgages (ARMs), we find that a sizable decline in mortgage payments (up to 50 percent) induces a significant increase in car purchases (up to 35 percent). This effect is attenuated by voluntary deleveraging. Borrowers with lower incomes and housing wealth have significantly higher marginal propensity to consume. Areas with a larger share of ARMs were more responsive to lower interest rates and saw a relative decline in defaults and an increase in house prices, car purchases, and employment. Household balance sheets and mortgage contract rigidity are important for monetary policy pass-through.

The FHFA House Price Index (FHFA HPI®) is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data. ​ What does the FHFA HPI represent? The FHFA HPI is a broad measure of the movement of single-family house prices. The FHFA HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.

The FHFA HPI serves as a timely, accurate indicator of house price trends at various geographic levels. Because of the breadth of the sample, it provides more information than is available in other house price indexes. It also provides housing economists with an improved analytical tool that is useful for estimating changes in the rates of mortgage defaults, prepayments and housing affordability in specific geographic areas.

U.S. Federal Housing Finance Agency, All-Transactions House Price Index for Connecticut [CTSTHPI], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CTSTHPI, August 2, 2023.

Graph and download economic data for All-Transactions House Price Index for the United States (USSTHPI) from Q1 1975 to Q2 2025 about appraisers, HPI, housing, price index, indexes, price, and USA.

Mortgage interest rates in Czechia have experienced significant fluctuations over the past few years, reaching a peak of nearly *** percent in December 2022 before gradually declining. As of March 2025, the interest rate on new mortgages in the country amounted to **** percent, showing a slight decrease from the previous month. This trend in mortgage rates has occurred alongside substantial increases in housing prices. Housing market dynamics The changes in mortgage rates have gone hand in hand with notable shifts in the Czech housing market. Despite the high-interest rates, new mortgage lending reached over 18 million Czech koruna in December 2024, marking a significant increase from the same month in the previous year. This growth in lending has continued despite the steady rise in housing prices, with the house price index reaching ***** in the third quarter of 2024. This marks a significant increase from the 2015 baseline, reflecting the ongoing upward trend. The average purchase price per square meter for family houses increasing across the country. In 2023, Prague recorded the highest average price at ******* Czech koruna per square meter. Construction sector trends The construction sector in Czechia has shown its response to these market conditions. The index of multi-dwelling building construction fluctuated recently, with 2024 showing a slight decrease to **** index points compared to the previous year. However, regarding non-residential buildings, the construction has been continuously growing since 2018 with hotels and industrial buildings accounting for the majority of new non-residential constructions.

Soaring interest rates are filtering through to the housing market, with lenders raising mortgage rates and pulling deals. What effect is this having on the housing market?

Graph and download economic data for Median Sales Price of Houses Sold for the United States (MSPUS) from Q1 1963 to Q2 2025 about sales, median, housing, and USA.

Key information about House Prices Growth

• Mexico house prices grew 8.8% YoY in Dec 2024, following an increase of 9.2% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2006 to Dec 2024, with an average growth rate of 7.4%.
• House price data reached an all-time high of 11.7% in Mar 2023 and a record low of 2.2% in Jun 2010.

The HUD monthly interest rate survey provides information on interest rates, loan terms, and house prices. The survey is conducted by property type, loan type, and lender type. How the survey is conducted The survey provides information on all properties, new properties, and previously occupied properties.The survey provides information on fixed-rate and adjustable-rate loans.The survey provides information on lenders such as savings associations, mortgage companies, commercial banks, and savings banks.What the survey includes The survey provides information on interest rates, loan terms, and house prices.The survey provides information on property type, loan type, and lender type.Update on the Discontinuation of FHFA's Monthly Interest Rate Survey (MIRS)On May 29, 2019, FHFA published its final Monthly Interest Rate Survey (MIRS), due to dwindling participation by financial institutions. MIRS had provided information on a monthly basis on interest rates, loan terms, and house prices by property type (all, new, previously occupied); by loan type (fixed- or adjustable-rate), and by lender type (savings associations, mortgage companies, commercial banks and savings banks); as well as information on 15-year and 30-year, fixed-rate loans. Additionally, MIRS provided quarterly information on conventional loans by major metropolitan area and by Federal Home Loan Bank district, and was used to compile FHFA’s monthly adjustable-rate mortgage index entitled the “National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders,” also known as the ARM Index.As some banks use the ARM Index as the basis for adjusting the interest rates on adjustable-rate mortgages, FHFA created and designated as the replacement for the ARM Index a version of Freddie Mac’s 30-year Primary Mortgage Market Survey® (PMMS®) that adjusts for differences between the two. This new index is called “MIRS Transition Index” and will be published on fhfa.gov on the final Thursday of every month. June 2019 was the first MIRS Transition index value to be published. The MIRS Transition index is intended to be used in lieu of the discontinued index for currently outstanding loans, and not as a reference rate on newly-originated adjustable-rate mortgages. The MIRS Transition Index was briefly referred to as PMMS+. It is not a replacement for PMMS.

The US home loan market, a cornerstone of the American economy, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) of 18% from 2025 to 2033. This expansion is fueled by several key drivers. Low interest rates, particularly in the early part of the forecast period, have historically stimulated borrowing, making homeownership more accessible. A growing population, coupled with increasing urbanization and a persistent demand for housing in key metropolitan areas, further fuels this market's expansion. Government initiatives aimed at supporting homeownership, such as tax incentives and affordable housing programs, also play a significant role. The market is segmented by loan type (purchase, refinance, improvement), source (banks, HFCs), interest rate (fixed, floating), and loan tenure. While refinancing activity might fluctuate based on prevailing interest rates, the underlying demand for home purchases remains strong, particularly in regions with robust job markets and population growth. Competition among lenders, including major players like Rocket Mortgage, LoanDepot, and Wells Fargo, alongside regional and smaller banks, is fierce, resulting in innovative loan products and competitive pricing. However, the market is not without its challenges. Rising inflation and potential interest rate hikes pose a significant risk, potentially dampening demand and increasing borrowing costs. Stringent lending regulations and increased scrutiny of creditworthiness could restrict access to loans for some borrowers. Furthermore, fluctuations in the housing market itself, including supply chain disruptions impacting construction and material costs, can influence the overall growth trajectory. Despite these headwinds, the long-term outlook for the US home loan market remains positive, driven by the fundamental need for housing and ongoing economic expansion in select regions. The diverse segmentation of the market allows for a nuanced understanding of the specific growth drivers and challenges within each segment. For instance, the home improvement loan segment is expected to see strong growth driven by homeowners' increasing desire to upgrade their existing properties. Recent developments include: June 2023: Bank of America Corp has been adding consumer branches in four new U.S. states, it said on Tuesday, bringing its national footprint closer to rival JPMorgan Chase & Co. Bank of America will likely open new financial centers in Nebraska, Wisconsin, Alabama, and Louisiana as part of a four-year expansion across nine markets, including Louisville, Milwaukee, and New Orleans., July 2022: Rocket Mortgage entered the Canadian Market with the acquisition. The company expanded from offering home loans in Ontario at launch to now providing mortgages in every province, primarily from its headquarters in downtown Windsor. The Edison Financial team grew along with the company, starting with just four team members in early 2020 to more than 140 at present.. Key drivers for this market are: Increase in digitization in mortgage lending market, Increase in innovations in software designs to speed up the mortgage-application process. Potential restraints include: Increase in digitization in mortgage lending market, Increase in innovations in software designs to speed up the mortgage-application process. Notable trends are: Growth in Nonbank Lenders is Expected to Drive the Market.

The average sales price of new homes in the United States experienced a slight decrease in 2024, dropping to 512,2000 U.S. dollars from the peak of 521,500 U.S. dollars in 2022. This decline came after years of substantial price increases, with the average price surpassing 400,000 U.S. dollars for the first time in 2021. The recent cooling in the housing market reflects broader economic trends and changing consumer sentiment towards homeownership. Factors influencing home prices and affordability The rapid rise in home prices over the past few years has been driven by several factors, including historically low mortgage rates and increased demand during the COVID-19 pandemic. However, the market has since slowed down, with the number of home sales declining by over two million between 2021 and 2023. This decline can be attributed to rising mortgage rates and decreased affordability. The Housing Affordability Index hit a record low of 98.1 in 2023, indicating that the median-income family could no longer afford a median-priced home. Future outlook for the housing market Despite the recent cooling, experts forecast a potential recovery in the coming years. The Freddie Mac House Price Index showed a growth of 6.5 percent in 2023, which is still above the long-term average of 4.4 percent since 1990. However, homebuyer sentiment remains low across all age groups, with people aged 45 to 64 expressing the most pessimistic outlook. The median sales price of existing homes is expected to increase slightly until 2025, suggesting that affordability challenges may persist in the near future.

The US mortgage lending market, a cornerstone of the American economy, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, a consistently increasing population and household formations drive demand for housing, consequently boosting mortgage loan originations. Secondly, historically low interest rates in recent years have stimulated borrowing, making homeownership more accessible. Furthermore, government initiatives aimed at supporting homeownership, along with increasing disposable incomes in certain segments of the population, contribute to the market's positive trajectory. The market is segmented by loan type (fixed-rate mortgages and home equity lines of credit), service providers (commercial banks, financial institutions, credit unions, and other lenders), and application mode (online and offline). Competition is intense among major players like Bank of America, Chase Bank, and US Bank, with smaller institutions and credit unions vying for market share. While the overall trend is positive, potential headwinds include fluctuations in interest rates, economic downturns impacting consumer confidence, and stringent regulatory environments which can impact lending practices. The geographical distribution of the US mortgage lending market reflects regional economic variations. While the United States dominates North America's market share, growth potential exists across various international markets. European and Asian markets, though characterized by distinct regulatory landscapes and consumer behaviors, present opportunities for expansion. The market's future trajectory will depend on several interconnected factors, including macroeconomic conditions, demographic shifts, and technological advancements influencing the mortgage lending process. The continued adoption of digital technologies is expected to streamline lending processes and expand access, impacting the future of the market significantly. Strategic partnerships and acquisitions are also anticipated, further consolidating the market landscape and driving innovation. Recent developments include: August 2023: Spring EQ, a provider of home equity financing solutions, has entered into a definitive agreement to be acquired by an affiliate of Cerberus Capital Management, L.P., a global leader in alternative investing. The main aim of the partnership is to support Spring EQ's mission to deliver offerings and expand its leadership in the home equity financing market., June 2023: VIU by HUB, a digital insurance brokerage platform subsidiary of Hub International Limited, has entered into a new partnership with Unison, a home equity-sharing company. The collaboration will allow homeowners to compare insurance coverage quotes from various carriers and receive expert advice throughout the process.. Key drivers for this market are: Home Renovation Trends are Driving the Market. Potential restraints include: Home Renovation Trends are Driving the Market. Notable trends are: Home Equity Lending Market is Being Stimulated By Rising Home Prices.

Annual house price data based on a sub-sample of the Regulated Mortgage Survey.

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, notably rising interest rates, spiralling inflation and muted economic growth. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated jump of 1.2% in 2025 to €207.6 billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing over the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated (2021-2023), being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent prices to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this has started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, PropTech—technology-driven innovations designed to improve and streamline the real estate industry—will force estate agents to adapt, shaking up the traditional real estate sector. A notable application of PropTech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.