The US housing market is experiencing a significant downturn. Homeowners who bought properties in cities like Atlanta, Austin, and Miami during the pandemic era may soon see their homes’ values decline. These cities offered attractive options to people seeking sun, space, and an escape from COVID-19 restrictions.
However, with mortgage rates now higher than 2.5%, buyers may struggle to hold on to these assets as their value was previously boosted by low interest rates. A recent study suggests a new approach to asset pricing that takes into account fear rather than risk for better returns.
Source: https://www.economist.com/finance-and-economics/2025/08/10/americas-housing-market-is-shuddering