The sign sold is outside the house.
Adam Jeffrey | CNBC
Rising mortgage rates did not slow the rise in house prices in March.
According to the S & P Core Logic Case-Shiller Home Price Index, home prices were 20.6% higher than in March 2021 nationwide. This is higher than the 20% rise in February. The index is a 3-month moving average up to March.
According to Mortgage News Daily, the average interest rate on 30-year fixed mortgages was 3.29% at the beginning of January and 4.67% at the end of March.
Case-Shiller’s 10-city complex increased by 19.5% annually in March, from 18.7% in February. Complex facilities in 20 cities saw an increase of 21.2% from 20.3% in the previous month. For both the country and 20 city composites, March measurements were the highest year-over-year price volatility in data over 35 years.
Regionally, Phoenix took the top spot for the first time in three years, and Tampa took over. Tampa, Phoenix and Miami continued to record their highest annual profits with increases of 34.8%, 32.4% and 32.0%, respectively. Seventeen of the 20 cities reported higher price increases in the year ending March 2022 compared to the year ending February 2022.
Craig Lazzara, Managing Director of S & PDJI, said: “All 20 cities saw double-digit price increases over the 12 months that ended in March, and price increases in 17 cities accelerated compared to the February report.”
Despite the double-digit numbers from a year ago, the cities with the smallest price increases were Minneapolis (+ 12.4%), Washington (+ 12.9%) and Chicago (+ 13%).
Home sales have been declining for several months, so prices are expected to begin to fall. However, demand remains high, and realtors report that multiple offers are still being seen for affordable homes. More supplies are on the market as sellers are worried that they may miss the last day of the hot market.
“As the Federal Reserve begins to raise interest rates, mortgages will be higher, suggesting that the macroeconomic environment may not support unusual home price increases for much longer. It’s safe to predict that it will start, but slowing down is a more difficult call. “