Home prices, which stabilized in recent months, are rising due to a shortage of pre-owned homes on the market. New single-family housing construction is
in response; despite an overall drop in housing starts in June, single-family building permit applications hit a 12-month-high. As remote workers moved into homes during the COVID-19 pandemic, housing demand outstripped supply, causing prices and construction to rise until late 2022, when the Federal Reserve’s interest rate hikes drove up mortgage rates.
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