US house prices may tumble another 8% this year as homebuyers feel the squeeze, KPMG says

• US house prices could drop another 8% this year as higher interest rates bit, KPMG said.
• Home prices could finish the year 10.5% below their June peak, the "Big Four" accounting firm said.
• KPMG flagged higher rates, tighter bank lending, and rising insurance and tax costs as headwinds.

US house prices could tumble another 8% this year as higher interest rates and stricter lending standards crimp demand, KPMG has warned.

Home prices, as measured by the Case-Shiller index, are likely to fall 10.5% from their June peak by the end of this year, Diane Swonk and Yelena Maleyev predicted in a March report. Swonk is the chief US economist of the "Big Four" accounting firm, while Maleyev is another in-house economist.