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What Factors are Fueling Increasing Home Prices?

Housing prices are accelerating nationwide. Why? Because, as indicated by the chart above, low housing supply and low mortgage rates have not been this conducive to higher prices at any point in the last 20 years. For example, even though there were times with low supply, mortgage rates were almost double what they are now. At some point, prices may hit a ceiling, but as long as rates remain low and people continue to flee major cities in search of suburban living, upward pressure on prices will likely remain.

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