(Bloomberg) -- 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 Monday.
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.
The easing in housing inflation expectations is good news for the Federal Reserve, which has raised interest rates in an effort to cool demand and rein in price pressures.
©2022 Bloomberg L.P.
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