What is driving today’s housing market? High mortgage rates are keeping the U.S. housing market subdued, but they are not affecting every market equally. Across metropolitan areas, the effects of elevated borrowing costs, affordability, employment, and inflation vary in tandem with local housing supply and demand. These differences are reflected in the Q2 2026 VeroFORECAST, projecting a nationwide home price appreciation of 1.1% and several local housing markets to experience varying levels of growth and decline.
In episode 48 of the RiskWire Webcast, Veros’ Chief Economist and Executive Vice President of Analytics, Eric Fox, and Senior Research Economist, Reena Agrawal, present the latest housing market insights on home prices from VeroFORECAST through June 2027. They examine how mortgage rates, inflation, employment, affordability, and housing supply are shaping the national forecast. They also compare expected home price trends in the Chicago, Dallas, Los Angeles, Miami, Phoenix, San Francisco, and Washington, D.C. housing markets.
Here are some key takeaways from the episode:
- As of June 2026, the Veros House Price Index (HPI) recorded a 2.5% year-over-year appreciation, the average 30-year mortgage rate was at 6.5%, inflation at 3.5%, and unemployment at 4.1%.
- Veros forecasts mortgage rates near 6.4%, inflation at 2.7%, and unemployment at 4.4% through June 2027. Together, these indicators suggest the housing market is likely to remain subdued.
- Los Angeles prices are forecast to rise 0.3%, while Phoenix and Washington, D.C., are projected to appreciate approximately 0.5% or less.
- Chicago home prices are forecast to appreciate approximately 3% through June 2027, supported by limited housing inventory.
- San Francisco prices are projected to rise 2.6%. Extremely constrained housing inventory and technology-related wealth is expected to help the market outperform the broader national trend.
Curious about the complete home price national outlook and market-by-market analysis? Watch episode 48 Webcast & Interviews – RiskWire, powered by Veros
For additional information about the housing market or economic trends, visit RiskWire.com today! Also, don’t forget to listen to RiskWire: On the House on your preferred channel: Apple Podcasts, Spotify, and YouTube Podcasts.
