U.S. House prices fall due to high interest rates.

Amid the high-intensity tightening of the U.S. Federal Reserve (Fed), the decline in U.S. housing prices is becoming clear. Analysts say that demand is slowing down as mortgage rates rise due to a hike in the benchmark interest rate, leading to a drop in housing prices.

The "Standard & Poor's (S&P) Core Logic Case-Ciller Housing Price Index" in August, which was released on the 25th, fell 1.1% from the previous month, marking the second consecutive month of decline following July (-0.3%). This is the largest month-on-month decline since December 2011. The S&P housing price index is considered a major index showing the average housing price trend in major U.S. cities.

The housing price index in 20 major cities in the United States fell 1.6% from the previous month. This is the biggest drop in 13 years since March 2009. The decline in housing prices has been strengthened in the western coastal city, where housing prices rose sharply last year, affecting the decline in overall housing prices in the United States. San Francisco (-4.3%), Seattle (-3.9%), and San Diego (-2.8%) were the cities where housing prices fell the most.

Compared to the previous year, the growth rate of housing prices in August was 13.0%, still showing a double-digit increase. However, the upward trend seems to have slowed down compared to July (15.6%).

House prices have turned downward, but U.S. inflation is still serious. According to the Wall Street Journal (WSJ), U.S. candy prices jumped 13.1% from the previous year ahead of Halloween in the U.S. on the 31st. The price of candy is the largest increase ever, so some say it is "candy inflation."

In the United States, demand for candy and chocolate increases rapidly when Halloween, when children dress up and go to receive candy or chocolate from house to house, approaches.

Date: 2022-10-27

Reporter: 정새울