Goldman Sachs expects price growth to decline for the rest of the year.
Since it's based on a three-month moving average, the report includes data from as far back as January when mortgage rates were slightly below today's rates.
"With mortgage rates now ~75bp higher, we expect some affordability-related pressures will drive weaker home price growth in coming months," Karoui wrote.
Although Goldman expects mortgage rates to slip to 6.4% by year-end, the cost of financing a home will still be relatively high.
The higher rates mean prospective homebuyers will face relatively higher monthly payments, putting a damper on demand and price growth in several cities.
Persons:
Goldman Sachs, Lotfi Karoui, Karoui, Goldman
Organizations:
Federal Reserve
Locations:
Seattle, Las Vegas