The numbers: U.S. home prices rose again in March even as higher mortgage rates began to bite, leaving prices at all-time highs. The S&P CoreLogic Case-Shiller 20-city price index was up a record 21.2% year over year while the federal government’s price tracker climbed 19% in the same span.
The Case Shiller index rose 3.1% in March compared to the prior month. A separate report from the Federal Housing Finance Agency showed a 1.5% monthly increase.
The record increases in home prices over the past few years is bound to slow with the Federal Reserve raising interest rates. The cost of a 30-year fixed mortgage has almost doubled to about 5.25% from 2.75% last fall.
High prices and higher mortgage rates have made buying a home more unaffordable.
What’s more, there’s still a lack of homes for sale and builders are facing bigger expenses for labor and materials.
Even so, strong demand for housing is likely to keep prices elevated.
Source: Article written by Jeffry Bartash (May 31, 2022)
U.S. Home Prices Rise at New Record Rate, Case-Shiller Shows