April Home Prices Reflect Largest Year-Over-Year Drop in Decade, April Prices Drop 1.7%, Decline 23.2% from Prior Year May 18, 2023 | Sundance | 54 Comments Homeowner equity is being erased. As higher interest rates continue to put pressure on borrowers, the ability of the average person to afford a mortgage diminishes. Higher mortgage rates lead to downward pressure on residential home values as fewer borrowers can afford higher payments. Simultaneously, commercial real estate is dropping in value as vacancies continue increasing. Put both of these issues together and already tenuous banks holding mortgage bonds as assets can become more unstable. This dynamic creates the continual tremors in the background of an economy already suffering from high inflation and low consumer purchasing of durable goods. A perfect storm starts to realize. (Wall Street...