US house prices might slump 10% over the next 2 years as higher mortgage costs bite, Moody's economist says

• US house prices are likely to fall by 5% to 10% in the next two years, a Moody's economist says.
• Higher mortgage rates and a growing supply of homes will push down prices, Matthew Walsh said.
• Elite investor Jeremy Grantham also expects house prices to drop to more affordable levels.

The US housing market will beat a retreat as more expensive mortgages crimp demand and the supply of homes swells, a Moody's economist predicts.