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.

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.

The number of U.S. home sales in the United States declined in 2024, after soaring in 2021. A total of four million transactions of existing homes, including single-family, condo, and co-ops, were completed in 2024, down from 6.12 million in 2021. According to the forecast, the housing market is forecast to head for recovery in 2025, despite transaction volumes expected to remain below the long-term average. Why have home sales declined? The housing boom during the coronavirus pandemic has demonstrated that being a homeowner is still an integral part of the American dream. Nevertheless, sentiment declined in the second half of 2022 and Americans across all generations agreed that the time was not right to buy a home. A combination of factors has led to house prices rocketing and making homeownership unaffordable for the average buyer. A survey among owners and renters found that the high home prices and unfavorable economic conditions were the two main barriers to making a home purchase. People who would like to purchase their own home need to save up a deposit, have a good credit score, and a steady and sufficient income to be approved for a mortgage. In 2022, mortgage rates experienced the most aggressive increase in history, making the total cost of homeownership substantially higher. Are U.S. home prices expected to fall? The median sales price of existing homes stood at 413,000 U.S. dollars in 2024 and was forecast to increase slightly until 2026. The development of the S&P/Case Shiller U.S. National Home Price Index shows that home prices experienced seven consecutive months of decline between June 2022 and January 2023, but this trend reversed in the following months. Despite mild fluctuations throughout the year, home prices in many metros are forecast to continue to grow, albeit at a much slower rate.

Over the current period, waterproofing contractors have faced an overall decline in revenue. While the residential construction market performed well for some of the current period, consistently slow commercial construction activity hindered growth. Over the past five years, industry-wide revenue has been declining at an expected CAGR of 2.2%, reaching an estimated $5.2 billion in 2024, when revenue is set to increase 0.1% and profit is expected to have fallen to 7.2%. The outbreak of COVID-19 had mixed effects on waterproofing contractors. Low interest rates meant to spur the economy led to a housing market boom, driving industry demand through private spending on home improvements and housing starts. Despite low interest rates, economic uncertainty and falling corporate profit led to falling commercial construction activity. As interest rates have been elevated from 2022 into 2024, when the Federal reserve has begun to cut rates, residential and commercial construction activity has fallen. Elevated wage and purchase costs have drove down average industry profit margins in recent years. Over the outlook period, waterproofing contractors will return to growth. Growing housing starts will bolster waterproofing contractors' growth as mortgage rates eventually drop. Private spending on home improvements returning to growth will be a boon to contractors. An uptick in commercial building construction activity over the outlook period as interest rates continue to drop will also promote growth. Tax incentives for energy-efficient residential and commercial buildings will greatly benefit waterproofing contractors. Overall, industry revenue is expected to grow at a CAGR of 1.6% to reach $5.6 in 2029.

The industry is composed of non-depository institutions that conduct primary and secondary market lending. Operators in this industry include government agencies in addition to non-agency issuers of mortgage-related securities. Through 2025, rising per capita disposable income and low levels of unemployment helped fuel the increase in primary and secondary market sales of collateralized debt. Nonetheless, due to the sharp contraction in economic activity at the onset of the period, revenue gains were limited, but climbed in the latter part of the period as the economy has normalized. Interest rates climbed significantly to tackle significant inflationary pressures, which increased borrowing costs, hindering loan volumes but increasing interest income for each loan. However, the Fed cut interest rates in 2024 and is anticipated to cut rates in the latter part of the current year, reducing borrowing costs and providing a boost to loan volumes. Overall, these trends, along with volatility in the real estate market, have caused revenue to slump at a CAGR of 1.3% to $488.9 billion over the past five years, including an expected decline of 0.1% in 2025 alone. The high interest rate environment has hindered real estate loan demand but increased interest income, boosting profit to 15.6% of revenue in the current year. Higher access to credit and higher disposable income have fueled primary market lending over much of the period, increasing the variety and volume of loans to be securitized and sold in secondary markets. An additional boon for institutions has been an increase in interest rates, which raised interest income as the spread between short- and long-term interest rates increased. These macroeconomic factors, combined with changing risk appetite and regulation in the secondary markets, have resurrected collateralized debt trading since the middle of the period. Although institutions are poised to benefit from strong economic growth, inflationary pressures easing and the decline in the 30-year conventional mortgage rate, the rate of homeownership is still expected to fall but at a slower pace compared to the current period. Shaky demand from commercial banking and uncertainty surrounding inflationary pressures will influence institutions' decisions on whether or not to sell mortgage-backed securities and commercial loans to secondary markets. These trends are expected to cause revenue to decline at a CAGR of 1.0% to $465.4 billion over the five years to 2030.

Global house prices experienced a significant shift in 2022, with advanced economies seeing a notable decline after a prolonged period of growth. The real house price index (adjusted for inflation) for advanced economies peaked at nearly *** index points in early 2022 before falling to around ****** points by the fourth quarter of 2024. This represents a reversal of the upward trend that had characterized the housing market for roughly a decade. Conversely, real house prices in emerging economies resumed growing, after a brief correction in the second half of 2022. What is behind the slowdown? Inflation and slow economic growth have been the primary drivers for the cooling of the housing market. Secondly, the growing gap between incomes and house prices since 2012 has decreased the affordability of homeownership. Last but not least, homebuyers in 2024 faced dramatically higher mortgage interest rates, further contributing to worsening sentiment and declining transactions. Some markets continue to grow While many countries witnessed a deceleration in house price growth in 2022, some markets continued to see substantial increases. Turkey, in particular, stood out with a nominal increase in house prices of over ** percent in the first quarter of 2024. Other countries that recorded a two-digit growth include Russia and the United Arab Emirates. When accounting for inflation, the three countries with the fastest growing residential prices in early 2024 were the United Arab Emirates, Poland, and Bulgaria.

The U.S. housing market has slowed, after ** consecutive years of rising home prices. In 2021, house prices surged by an unprecedented ** percent, marking the highest increase on record. However, the market has since cooled, with the Freddie Mac House Price Index showing more modest growth between 2022 and 2024. In 2024, home prices increased by *** percent. That was lower than the long-term average of *** percent since 1990. Impact of mortgage rates on homebuying The recent cooling in the housing market can be partly attributed to rising mortgage rates. After reaching a record low of **** percent in 2021, the average annual rate on a 30-year fixed-rate mortgage more than doubled in 2023. This significant increase has made homeownership less affordable for many potential buyers, contributing to a substantial decline in home sales. Despite these challenges, forecasts suggest a potential recovery in the coming years. How much does it cost to buy a house in the U.S.? In 2023, the median sales price of an existing single-family home reached a record high of over ******* U.S. dollars. Newly built homes were even pricier, despite a slight decline in the median sales price in 2023. Naturally, home prices continue to vary significantly across the country, with West Virginia being the most affordable state for homebuyers.

After a period of rapid increase, house price growth in the UK has moderated. In 2025, house prices are forecast to increase by ****percent. Between 2025 and 2029, the average house price growth is projected at *** percent. According to the source, home building is expected to increase slightly in this period, fueling home buying. On the other hand, higher borrowing costs despite recent easing of mortgage rates and affordability challenges may continue to suppress transaction activity. Historical house price growth in the UK House prices rose steadily between 2015 and 2020, despite minor fluctuations. In the following two years, prices soared, leading to the house price index jumping by about 20 percent. As the market stood in April 2025, the average price for a home stood at approximately ******* British pounds. Rents are expected to continue to grow According to another forecast, the prime residential market is also expected to see rental prices grow in the next five years. Growth is forecast to be stronger in 2025 and slow slightly until 2029. The rental market in London is expected to follow a similar trend, with Outer London slightly outperforming Central London.

Rates have been trending downward in Canada for the last five years. The ebbs and flows are caused by changes in Canada’s bond yields (driven by Canadians economic developments and international rate movements, particularly U.S. rate fluctuations) and the overnight rate (which is set by the Bank of Canada). As of August 2022, there has been a 225 bps increase in the prime rate, since beginning of year 2022, from 2.45% to 4.70% as of Aug 24th 2022. The following are the historical conventional mortgage rates offered by the 6 major chartered banks in Canada in the past 20 years.

The U.S. housing market continues to evolve, with the median price for existing homes forecast to fall to ******* U.S. dollars by 2027. This projection comes after a period of significant growth and recent fluctuations, reflecting the complex interplay of economic factors affecting the real estate sector. The rising costs have not only impacted home prices but also down payments, with the median down payment more than doubling since 2012. Regional variations in housing costs Home prices and down payments vary dramatically across the United States. While the national median down payment stood at approximately ****** U.S. dollars in early 2024, homebuyers in states like California, Massachusetts, and Hawaii faced down payments exceeding ****** U.S. dollars. This disparity highlights the challenges of homeownership in high-cost markets and underscores the importance of location in determining housing affordability. Market dynamics and future outlook The housing market has shown signs of cooling after years of rapid growth, with a modest price increase of *** percent in 2024. This slowdown can be attributed in part to rising mortgage rates, which have tempered demand. Despite these challenges, most states continued to see year-over-year price growth in 2025, with Rhode Island and West Virginia leading the packby home appreciation. As the market adjusts to new economic realities, potential homebuyers and investors alike will be watching closely for signs of stabilization or renewed growth in the coming years.

Evaluate Canada’s best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms. Rates are based on an average mortgage of $300,000

US loan brokers encountered revenue declines over the past five years as high interest rates increased borrowing costs and hindered demand for loans and a weakened residential market hindered demand for mortgages. The significant rise in the 30-year conventional mortgage rate over the past five years slowed housing starts and existing home sales as borrowing costs increased and loan demand fell. However, interest rate cuts in the latter part of the period will reduce borrowing costs and increase demand for loans, helping to limit revenue losses for the industry. Interest rate cuts are expected to be cut further in 2025. In addition, loan brokers will continue to contend with educated consumers attracted to the easy lending processes popularized by online lenders. Also, access to credit has climbed during the current period, which has limited revenue declines as consumers were able to increasingly borrow during the high interest rate environment. Overall, industry revenue declined at a CAGR of 4.1% to $16.6 billion over the five years to 2025. Industry revenue is also anticipated to decline 0.6% in 2025 alone, with profit falling to 10.2% of revenue in the same year. Loan originations for new homes and remodeling declined due to the persistent high interest rate environment. High interest rates discouraged consumers from taking on new loans amid the skeptical economic outlook. Since loan brokers generate revenue through commission or on a fee basis, the decrease in loan originations contributed to falling revenue generation and profit, measured as earnings before interest and taxes. Profit has been under pressure as industry wages have begun to outpace revenue growth. As this trend continues into the outlook period, profit will be constrained. Over the next five years, revenue for loan brokers is set to grow at a CAGR of 0.7% to $17.2 billion over the five years to 2030. Rekindling consumer confidence and greater access to credit will be the predominant drivers of industry growth over the coming years. In addition, the growth rate will climb as the Federal Reserve is anticipated to make further rate cuts at the onset of the outlook period. Demand for new loans will be strong, with the lending market being accommodating by historical standards.

Faucet manufacturers have faced various challenges and opportunities during the current period, with a modest CAGR growth of 0.1%. A downturn in residential construction has negatively impacted the industry, as the housing market significantly influences faucet demand. Despite a slight increase in disposable income, rising mortgage rates have slowed construction. In this climate, faucet manufacturers have mitigated the impact by focusing on nonresidential markets and optimizing efficiencies to compete more effectively with imported faucets on a price basis. This strategic focus has in part supported a 1.0% growth for the industry in 2024, reaching $6.8 billion in revenue. The industry's structure has been characterized by significant consolidation, with the top four companies generating over two-thirds of revenue. Imports, mainly from China, have declined as a share of domestic demand due to increased US tariffs and geopolitical tensions. Meanwhile, exports remain a minor revenue source for US manufacturers due to intense competition from lower-cost imports. The industry's strategic focus on brand reputation, product features and strong customer service has helped offset price competition. Nonetheless, imports continue to present moderate competition, accounting for around 20% of domestic demand. As domestic manufacturers aim to enhance their competitive edge, some have opted to produce abroad, albeit this categorizes such products as imports. Looking ahead, the industry anticipates a projected 2.0% CAGR growth, reaching $7.6 billion in revenue by 2030, driven by factors like residential construction expansion and smart technology adoption. Falling mortgage rates and population growth are expected to promote demand for plumbing fixtures. Continued consolidation is anticipated to enhance profitability by decreasing competition and promoting operational efficiencies. Additionally, smart faucet adoption is set to rise, creating new market opportunities associated with tech-savvy consumers. Though input costs are projected to remain relatively stable, businesses can better manage risks by hedging commodity prices. Furthermore, by capitalizing on economic and demographic trends, manufacturers are effectively positioning themselves for future growth and enhanced profitability in the evolving market landscape.

Housing Starts in the United States decreased to 1307 Thousand units in August from 1429 Thousand units in July of 2025. This dataset provides the latest reported value for - United States Housing Starts - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The U.S. mortgage market has declined notably since 2020 and 2021, mostly due to the effect of higher borrowing costs on refinance mortgages. The value of refinancing mortgage originations amounted to 112 billion U.S. dollars in the first quarter of 2025, down from a peak of 851 billion U.S. dollars in the fourth quarter of 2020. The value of mortgage loans for the purchase of a property recorded milder fluctuations, with a value of 272 billion U.S. dollars in the first quarter of 2025. According to the forecast, mortgage lending is expected to slightly increase until the end of 2026. The cost of mortgage borrowing in the U.S. Mortgage interest rates in the U.S. rose dramatically in 2022, peaking in the final quarter of 2024. In 2020, a homebuyer could lock in a 30-year fixed interest rate of under three percent, whereas in 2024, the average rate for the same mortgage type exceeded 6.6 percent. This has led to a decline in homebuyer sentiment and an increasing share of the population pessimistic about buying a home in the current market. The effect of a slower housing market on property prices and rents According to the S&P/Case Shiller U.S. National Home Price Index, housing prices experienced a slight correction in early 2023, as property transactions declined. Nevertheless, the index continued to grow in the following months. On the other hand, residential rents have increased steadily since 2000.

Over the five years through 2024-25, the Home Insurance industry's revenue is anticipated to remain flat over the five years through 2024-25, standing at £6 billion. Revenue is comprised of premium income and investment income. Insurers must maintain enough capital reserves to meet liabilities in the event of a claim; insurers invest premium income in a diverse range of asset classes to gain a return. Despite strong demand for home insurance, supported by a rising number of housing transactions and a strong rental market, the home insurance industry has endured challenging operating conditions in recent years, including intense competition from other financial institutions like retail banks, downward pricing pressures and a tightening regulatory environment. According to ABI, premiums plummeted by 6% in 2022 amid fierce price competition and the FCA's new pricing reforms. This was despite a rise in claims following numerous severe weather events and inflated building material costs. Premiums eventually jumped in 2023-24 as insurers sought to mitigate intense cost pressures amid the inflationary environment, supporting revenue. However, a downturn in the housing market due to rising mortgage rates eroded demand for insurance, partially offsetting higher premiums. In 2024-25, premiums will continue to rise as insurers desperately try to boost profit. The UK housing market is also positioned for a strong recovery, supported by falling mortgage rates and improving economic sentiment, contributing to revenue growth of 6.6% in 2024-25. Home insurance revenue is forecast to climb at a compound annual rate of 2.7% over the five years through 2029-30 to reach £6 billion. Although premium growth is set to slow as inflation normalises, the housing market is set for solid growth in the coming years thanks to the lower interest rate environment, lifting demand for home insurance. All insurers are set to be compliant with the Solvency II reforms by December 2024, which will unlock £100 billion of investment, lifting revenue growth over the coming years. Insurtechs will continue to lead the way in innovation offering greater personalisation for customers thanks to AI and big data.

The price of wood saw record-high growth in 2021, contributing to industry expansion as demand surged from the booming housing market stimulated by historically low mortgage rates. The key materials in this industry—such as round or hewn wood products, rough and dressed softwood lumber and various types of veneer and plywood—are sensitive to price fluctuations, which directly impact industry revenue. Pandemic-induced supply chain disruptions further exacerbated the issue by limiting the wood supply, leading to unprecedented price increases and profit volatility. However, as mortgage rates climbed by more than double in the latter half of the current period, residential construction slowed, curbing demand for wood products and resulting in industry contraction when wood prices plummeted in 2023. As the industry looks toward 2024, revenue is anticipated to contract due to decreased housing market demand. Despite a rise in lumber prices throughout 2024, prices are expected to remain below 2023 levels, contributing to reduced industry revenue. This decline in lumber prices on an annual basis is linked to a drop in new housing starts and increased housing inventory within the US construction sector. Factors such as higher financing costs, elevated mortgage rates and shortages of both labor and land have contributed to the reduction in housing starts. Despite the projected 1.2% decline in 2024, revenue is projected to grow at a CAGR of 0.4% to reach $28.8 billion this year. Projected declines in mortgage rates are expected to stimulate residential construction, subsequently increasing demand for wood panels. Growth in the housing market will contribute to industry growth, which is anticipated to be in the low-single-digit range over the outlook period, in line with historical trends. This growth projection assumes stable prices for input materials, as any significant fluctuations could substantially impact revenue. Additionally, competition from imported goods is expected to decline due to a combination of factors, including exchange rates and tariffs on imports. Overall, industry revenue is projected to increase at a CAGR of 1.7% to reach $31.3 billion by 2029.

Mortgage rates surged at an unprecedented pace in 2022, with the average 10-year fixed rate doubling between March and December of that year. In response to mounting inflation, the Bank of England implemented a series of rate hikes, pushing borrowing costs steadily higher. By August 2025, the average 10-year fixed mortgage rate had climbed to 4.49 percent. As financing becomes more expensive, housing demand has cooled, weighing on market sentiment and slowing house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold fell significantly in 2023, dipping to just above *** million transactions. This contraction in activity also dampened mortgage lending. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans declined year-on-year for five consecutive quarters. Even as rates eased modestly in 2024 and housing activity picked up slightly, volumes remained well below the highs recorded in 2021. How are higher mortgages impacting homebuyers? For homeowners, the impact is being felt most acutely as fixed-rate deals expire. Mortgage terms in the UK typically range from two to ten years, and many borrowers who locked in historically low rates are now facing significantly higher repayments when refinancing. By the end of 2026, an estimated five million homeowners will see their mortgage deals expire. Roughly two million of these loans are projected to experience a monthly payment increase of up to *** British pounds by 2026, putting additional pressure on household budgets and constraining affordability across the market.

The residential construction and renovation market is the largest source of demand for wood windows and doors, significantly influencing prices and industry dynamics. In recent years, lower mortgage rates and increased home equity borrowing have contributed to new home purchases and home improvement projects, driving demand for industry products. As interest rates rose and housing starts fell from the highs of 2021, manufacturers have faced slower sales growth and profitability challenges, leading to some plant closures. Meanwhile, vinyl has emerged as a strong competitor due to its cost-effectiveness and performance benefits. Interest rate cuts are expected to boost home improvement spending, particularly through home equity lines of credit, yet competition from alternative materials continues to present challenges for the industry. Wood door and window manufacturing revenue is estimated to increase at a CAGR of 0.6% to $17.2 billion through the end of 2025, with a forecast increase of 1.9% during the current year. The wood window and door manufacturing market is expected to benefit from rising home ownership and construction activity as mortgage rates fall, although challenges like housing affordability remain. Increased residential and nonresidential construction and remodeling activity will drive demand, with construction materials companies potentially engaging in M&A to capitalize on these trends. A steady US dollar will boost exports, but competition from low-cost imports and substitutes like vinyl, steel, and fiberglass may constrain growth. The recovery of the nonresidential market will also contribute to demand, with segments like office, commercial, hospital, and educational building construction expected to expand. Wood door and window manufacturing revenue is expected to expand at a CAGR of 2.0% to $18.9 billion through the end of 2030.

Home warranty companies have experienced a rollercoaster of trends because of volatile housing markets driven by changes in mortgage rates. A spike in demand for residential construction and warranties followed the pandemic-era plunge in mortgage rates, leading to increased revenue throughout 2020 and 2021. Regardless, with interest rates rising from 2022 to 2024, the housing market cooled off, leading to slowed revenue growth for home warranty companies. Yet, providers found some financial relief in higher renewal rates, which remained a consistent revenue stream despite changing market conditions. Overall, revenue for home warranty providers is anticipated to swell at a CAGR of 4.1% during the current period, reaching $4.3 billion in 2024. This includes a 0.6% rise in revenue in that year. There’s been a persistent trend towards digital integration, with providers significantly investing in technology to enhance the customer experience. The development of mobile applications and online portals for claims processing and coverage management improved overall service efficiency and customer satisfaction. However, unpredictable weather patterns, such as high precipitation in February 2019 and intense cold in February 2021, have led to higher claims and squeezed profit at times. Meanwhile, leading players prioritized transparency in warranty terms and conditions to build trust and maintain high renewal rates, which has been essential in navigating market challenges. Looking ahead, providers anticipate a favorable turn as economic conditions evolve, especially with the Federal Reserve reducing borrowing costs in 2024, leading to a potential housing market recovery. Rising disposable incomes and stabilizing GDP growth are expected to bolster the industry as households increase home warranty policy purchases. Yet, the industry faces constraints due to stagnant homeownership rates tied to restrictive local zoning laws. Overall, revenue for home warranty companies is forecast to creep upward at a CAGR of 1.2% during the outlook period, reaching $4.6 billion in 2029.