U.S. home prices fall for fourth month in October as high mortgage rates bite

[ad_1]

The numbers: The S&P CoreLogic Case-Shiller 20-city house price index fell 0.5% in October, its fourth monthly decline. 

Year-over-year prices rose rose 8.6%, slowing from 10.4% in the previous month.

A broader measure of home prices, the national index, fell a seasonally adjusted 0.3% in October from September.

A separate report from the Federal Housing Finance Agency showed home prices remaining flat in October, down from a 0.1% gain the prior month. 

And over the last year, the FHFA index was up 9.8%.

Key details: Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in October. All 20 cities reported lower price increases.

San Francisco and Seattle reported the lowest year-over-year gains, which have seen prices fall by more than 10% from a peak in May.

Big picture: Housing is in a slowdown, but affordability hasn’t returned. Homes are still expensive, as mortgage rates remain above 6%, and inventory of homes available for sale remains low.

What S&P said: “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be a headwind for home prices,” Craig J. Lazzara, managing director at S&P DJI, said.

“Given the continuing prospects for a challenging macroeconomic environment, prices may well continue to weaken,” he added.

Market reaction: The Dow Jones Industrial Average
DJIA,
-0.01%

and the S&P 500
SPX,
-0.44%

were up in early trading on Tuesday. The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.807%

rose above 3.81%.

[ad_2]

Image and article originally from www.marketwatch.com. Read the original article here.

By admin