First Street's assessment shows climate disasters in the US driving up mortgage foreclosures through rising insurance costs, flood damage, and credit risk, threatening housing market stability.

Policy unpredictability, rising insurance and tax costs, and trade tensions are slowing the U.S. housing market recovery in 2019, creating cautious consumer behavior and a weak summer buying season outlook.

Homeowners insurance premiums have surged 24% from 2021 to 2024, driven by extreme weather events and rising rebuilding costs, exacerbating U.S. housing affordability challenges for buyers and owners alike.

Mortgage application volume soared last week due to falling interest rates, with refinancing demand up significantly. Read more about the market dynamics.