A decade-long surge in U.S. home prices may be nearing its end as the Federal Reserve concludes its rate-hiking cycle, according to Robert Shiller, a professor of economics at Yale University.

Since 2012, U.S. home prices have consistently risen, as evidenced by the S&P CoreLogic Case-Shiller U.S. National Home Price Index. Shiller explained on CNBC’s “Squawk Box Asia” that the anticipation of rising interest rates has significantly influenced both homeowners and prospective buyers, prompting many to lock in rates before further increases. “That positive influence on the market is coming to an end,” he stated.

Shiller observed “unusual behavior” in the housing market over the past six months, noting that prices appeared stable before experiencing an unexpected rise. In May, U.S. home prices reached a record high, increasing by 0.7% nationally from April, as per the Black Knight Home Price Index.

Uncertainty about the Federal Reserve’s next steps has left many market participants uncertain, Shiller mentioned. Despite the Fed signaling further rate tightening during its June meeting, the pace is expected to slow compared to the aggressive increases since early 2022.

Shiller noted the dramatic rise in interest rates over the past couple of years and suggested that it might be sufficient for now. He mentioned the possibility of a soft landing, though not a perfect one, for the housing market. Despite recent price spikes, he is not overly concerned, attributing part of the increase to typical seasonal trends.

The Federal Reserve is set to meet this week and is expected to announce a rate decision on Wednesday. Economists surveyed by Reuters predict a 25-basis point increase in interest rates.