Home prices in the United States have reached an all-time high, despite rising mortgage interest rates. The S&P CoreLogic Case-Shiller U.S. National Home Price Index showed prices were 5.4% higher in June compared to the previous year. While this was a record high for the index, the annual gain was slightly lower than in May. The 10-city composite rose by 7.4% annually, and the 20-city composite was up by 6.5% year over year. New York, San Diego, and Las Vegas saw the highest annual price increases, while Portland had the smallest gain.
The report also highlighted the impact of housing affordability, with low-price tiers rising faster than the overall market in many cities. Despite rising mortgage rates from April to June, there was evidence that the decline in rates had not been enough to bring buyers back into the market. Some buyers are waiting for home prices to come down, in addition to lower interest rates.
Although home prices are expected to ease slightly in the fall due to seasonal factors and more inventory on the market, they are unlikely to drop significantly. Home prices are still expected to be higher than they were last fall. Overall, the housing market continues to show resilience, with prices remaining high even in the face of rising interest rates.
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