NEW YORK–Credit union members will be in need of larger downpayments—or smaller homes—as home prices hit a 30-month high in January, according to the S&P/Case-Shiller Home Price Index.
The Index is reporting that home prices rose 5.9% year-over-year up from December's 5.7% annual gain. The Index further found that of the nation's 20 largest cities, three reached their all-time highs in January: Seattle, Portland, and Denver.
"Housing and home prices continue on a generally positive upward trend," said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, in a statement. “Actions by the Federal Reserve raising the target for the Fed funds rate by a quarter of a percentage point is expected to add less than a quarter percentage point to mortgage rates in the near future.”
But Blitzer also added a cautionary note, adding, “If we see three or four additional Fed increases this year, rising mortgage rates could become a concern."