US house prices have seen a dip in the last few months, with some calling it a “correction” and others saying a modest fall could continue due to outward macroeconomic pressures.
This is relevant to investment teams at insurers because house prices indirectly affect US fixed-income investments, primarily through their influence on inflation and interest rates.
Rising house prices often signal inflation, which could prompt the Federal Reserve to raise interest rates to cool the economy.
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