New Delhi, Nov. 1 -- High mortgage rates are expected to weigh on US home sales and slow house price growth to less than 1 per cent in 2027, as rising borrowing costs continue to hurt affordability despite a longstanding housing shortage, according to a report by Goldman Sachs Research.

In its report titled 'The Outlook for US Housing in 2027 amid Rising Mortgage Rates', Goldman Sachs projected existing home sales to decline to 3.9 million in 2027 from an estimated 4 million in 2026, remaining 26 per cent below 2019 levels.

"In 2027, we expect the headwind from affordability to increasingly dominate, weighing further on activity," Goldman Sachs economists Ronnie Walker and David Mericle said in the report.

The investment bank also expe...