In few places is the rise in Treasury yields more strongly felt than in the housing market, where restrictive Fed policy and tight supply have conspired in the last couple of years to put a damper on activity. As momentum built toward the Fed’s pivot on interest rates, there had been hope that impending easing might lead to a recovery in US home sales. Unfortunately, as robust economic data in recent weeks diminished expectations for aggressive Fed cuts going into 2025, homebuyers’ enthusiasm has likewise slumped.