House prices in the United States stopped the growth
2022.11.29 09:15
House prices in the United States stopped the growth
Budrigannews.com – According to Tuesday’s closely watched surveys, demand for single-family homes in the United States decreased further in September as mortgage rates rose.
In September, the S&P CoreLogic Case Shiller national home price index decreased by 0.8 percent month-over-month.For the first time since late 2018, monthly house prices fell in July.
In September, house prices increased by 10.6% year-over-year, down from 12.9% in August.
The aggressive rises in interest rates initiated by the Federal Reserve in an effort to reduce high inflation by lowering economic demand have had a negative impact on the housing market.
According to data from the mortgage finance agency Freddie Mac (OTC:), the 30-year fixed mortgage rate surpassed 7% in October for the first time since 2002 showed. Even though the rate has fallen to an average of 6.58 percent this week, it is still well above the 3.10 percent average for the same time last year.
Craig Lazzara, managing director at S&P DJI, stated in a statement, “As the Fed continues to move interest rates higher, mortgage financing continues to be more expensive, and housing becomes less affordable.”Home prices may well continue to decline given the likelihood of a challenging macroeconomic environment.”
This month’s data revealed that single-family homebuilding and permits for future construction fell to their lowest levels since May 2020, while sales of previously owned homes experienced their ninth consecutive monthly decline in October.
However, a floor will most likely remain below house prices due to limited supply. During the COVID-19 pandemic, a rise in remote work led to a boom in the housing market and set record prices.
Home prices decreased by 0.7% in August, according to a separate report from the Federal Housing
Finance Agency in September, edging up 0.1% on a monthly basis. After rising by 12.0% in August, prices increased by 11% through September.
William Doerner, supervisory economist in the FHFA Division of Research and Statistics, stated, “The rate of U.S. house price growth has substantially decelerated.”
“This deceleration is widespread, with annual growth below 10% recorded in approximately one third of all states and metropolitan statistical areas.”
