Signs of “bubble” rekindled in the US housing market

The amount of available homes in the US is becoming scarce, house prices have been pushed up continuously for the past several months, the inventory of homes for sale is at a record low. Experts are concerned that a “bubble”, which is rare, may be forming in the US.

In the US, the amount of available houses is becoming scarce, house prices have been pushed up continuously for many months. (Illustration image – Photo: Xinhua)

Business Insider explains, a housing “bubble” occurs when house prices artificially rise. Price House The US skyrocketed due to high demand, especially when the US Federal Reserve (FED), in March, raised interest rates, causing home loan interest rates to rise.

CNN Citing the Fed’s opinion, unusual signs are appearing in the US housing market, like in 2000 and 2007, when the bubble happened. This raises concerns that a similar scenario will soon emerge where house price increases are not tied to economic fundamentals, that is, virtual increases.

Just like in Vietnam, the psychological factor of buyers has a great influence and is a cause leading to high house prices in the US. Many buyers believe that current home prices will continue to rise, so they are afraid of missing out on the opportunity to buy a home when prices are low and they will have to buy at a higher price later.

Reuters Posted an article saying that first-time home buyers in the US were desperate for high prices. Many people bring all their savings, combined with improving their credit score, but it is not enough to apply for a home. Many people complain that they are being overpaid for their home.

According to Fortune. Homebuyers now pay higher interest, 4.67% on average on 30-year fixed-rate mortgages.

In the upcoming meeting, the US Federal Reserve is likely to continue to raise interest rates. This tightening Financial Policy will put more pressure on homebuyers, especially those who are first-time homebuyers.

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