10 years of rally in U.S. house prices could end, says Robert Shiller
"The fear of interest rate increases has influenced people's thinking — it's not just the homeowners, it's new buyers who wanted to get in before the interest rates went up even more," says Robert Shiller, professor of economics at Yale University.
A decade-long rally in U.S. home prices could finally come to an end once the Federal Reserve stops its rate-hiking cycle, said Robert Shiller, professor of economics at Yale University.
Home prices have made steady gains since 2012, according to the S&P Case-Shiller U.S. National Home Price Index.
"The fear of interest rate increases has influenced people's thinking — it's not just the homeowners, it's new buyers who wanted to get in before the interest rates went up even more," Shiller said.
"They wanted to lock in. So that's been a positive influence on the market. But it's coming to an end," he added.
Shiller noted that the index reflected "unusual behavior" in the last six months, saying prices "seemed to be fine and then it started to go up."
Source: CNBC
