Research Lab

Treasury Yields

When Treasury yields increase, mortgage rates rise, making borrowing costlier. This reduces affordability, lowers demand, and can slow home sales, causing prices to stabilize or decline. Higher yields often cool the housing market.

Interest Rates

A 1% change in interest rates can significantly affect monthly mortgage payments, influencing housing demand and prices. 

Employment and Wage Growth

Homebuyers rely on stable income and growing wages to secure and repay mortgages, making this a key driver of housing affordability and price trends. 

Inflation

Higher inflation erodes purchasing power, reducing affordability for buyers. Also, inflation can lead to rising interest rates (as central banks try to control it), which further increases the cost of borrowing. However, property is often seen as a hedge against inflation, so in some cases, home prices rise as buyers seek to protect their wealth. 

Government Policies and Incentives

Tax incentives, stamp duty exemptions, subsidies, and programs such as Help to Buy or Mortgage Guarantee Schemes can stimulate or cool down the housing market. Policies that make it easier for first-time buyers to enter the market, for example, increase demand and can drive up prices.