WASHINGTON–Home prices in the U.S. fell in September over the prior month, marking the first time prices have declined for three straight months in nearly four years, according to new data.
After several years of rapid appreciation during the COVID pandemic, price increases have slowed due in part to rising rates, which have pushed affordability out of the range of many would-be buyers. However, as CUToday.info reported, home prices are still rising on an annual basis because the inventories of homes for sale are at unusually low levels. In September, the index rose 10.6% compared with a year earlier. That was down from a 12.9% annual rate the prior month, and many economists are forecasting year-over-year price declines in 2023, noted the Wall Street Journal.
West Coast Hit Hardest
The report pointed out the West Coast has been hit hardest by rising interest rates due to being the most expensive housing market in the U.S., with home prices also falling 2.9% on a monthly basis.
Moreover, added the Journal, the Case-Shiller index, which measures repeat-sales data, reports on a two-month delay and reflects a three-month moving average. Homes usually go under contract a month or two before they close, so the September data is based on purchase decisions made earlier in the year, the analysis explained.
Will Continue to ‘Weaken’
“As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable,” Craig Lazzara, managing director at S&P Dow Jones Indices, told the Wall Street Journal. “Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”
The average rate on a 30-year fixed-rate mortgage was 6.58% in the week ended Nov. 23, up from 3.1% from a year earlier, according to Freddie Mac.
Every Morning. The Freshest CU Headlines. For You. For Free. Or Your Money Back
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com