The national average residential price increased by 3.4 US$373,333 in the first quarter of 2017, from US$360,900 a year ago, according to the US Census Bureau. The growth in the American housing market remains tethered to various factors and trends apart from fluctuating residential house prices. Residential construction remains sluggish in the wake of the Great Recession, which has constricted the supply of new inventory.
Americans looking to purchase homes are likely to face headwinds from tighter inventory and rising mortgage rates in the quarters to come. Higher borrowing costs are likely to hinder young households from buying homes, as many are stuck with student loan debts, making saving for a down payment and affording a mortgage a challenge.