U.S. housing prices could plunge 20%, Dallas Fed warns

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U.S. housing prices could plunge 20%, Dallas Fed warns
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After surging during the pandemic, the real estate market is at risk of a sharp downturn, an economist says.

this year. The central bank wants to tame the highest inflation in 40 years by raising the cost of borrowing, which should temper demand from businesses and consumers.

Home prices rose a total of about 61% between 2013 and 2022, after adjusting for inflation — a jump that outpaced the previous housing bubble from 1998 to 2007, according to his calculations.

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