Market Forecasts

Chart showing why home prices remain high despite elevated mortgage rates

Why Home Prices Remain High Despite High Mortgage Rates

Many expected home prices to decline as mortgage rates climbed and affordability deteriorated, but today’s housing market is being shaped by an equally important shortage of homes for sale. Learn how low inventory, the mortgage lock-in effect, record homeowner equity, and years of underbuilding continue to keep home prices elevated despite slower sales activity.

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Q2 2025 VeroFORECAST signals further slowdown in the housing market

Veros’s Q2 2025 VeroFORECAST℠ projects 2.2% nationwide home price appreciation, indicating a stalled U.S. housing market where high mortgage rates and affordability challenges persist. This leads to varied regional performance, with some affordable metros strengthening while Florida and Texas markets show weakness

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VeroFORECAST Q1 2025

The Q1 2025 VeroFORECAST projects a modest 2.4% national home price appreciation, a slight decrease from the previous quarter, influenced by sustained high mortgage rates and inflation. While a national slowdown is anticipated, significant regional variations persist, with the Northeast and Midwest showing strength and the Sunbelt facing headwinds due to increased inventory and affordability issues

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