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Housing may soon flash a recession warning as investment cracks under the weight of high rates

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"Housing activity looks set to contract in Q2 after advancing only weakly in Q1."
The article from Fortune, published on May 26, 2025, discusses the current state of the U.S. housing market and its potential impact on the broader economy. It highlights a significant slowdown in residential investment, which has raised concerns about an impending recession. The piece notes that high mortgage rates, currently hovering around 7%, are deterring potential homebuyers and causing a decline in new home construction. Experts cited in the article warn that if the housing market continues to weaken, it could lead to a broader economic downturn, as residential investment is a key driver of economic growth. The article also mentions that policymakers are closely monitoring the situation and considering measures to stimulate the housing market, such as adjusting interest rates or offering incentives for homebuyers.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/26/housing-market-outlook-recession-warning-residential-investment-mortgage-rates/ ]