US house prices' regional variance starting to drive trends nationwide

Up in the Northeast, down in the West and South – what will it mean overall and what’s driving it?

San Fran Housing @Pixabay.
San Francisco is one of the metro areas with falling house prices, but what could that mean if it were a national issue?

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.

What’s causing the change, and what could it mean?

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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