S&P Case-Shiller Says Home Prices Grew Nearly 20% In February, Slowdown May Be Coming

Home prices grow

According to the S&P CoreLogic Case-Shiller national home price index, home prices grew 19.8% year over year in February, up from a 19.1% yearly gain in January and is the index’s third-highest reading in its 35-year history.

The cities in the Sun Belt continued to enjoy the most growth. The 10-city composite annual growth increased to 18.6% in March, up from 17.3% the previous month, while the 20-city composite was up 20.2% from 18.9%. Annual home price increases of 32.9%, 32.6%, and 29.7% were recorded in Phoenix, Tampa, Florida, and Miami. The minor price increases were in Minneapolis, New York, and Washington, D.C., though they were still in the double figures.

As we move through the spring housing market, we are seeing clear signs of cooling demand. Many buyers are deciding to take a step back and re-evaluate their budgets and timelines,” said George Ratiu, manager of economic research at Realtor.com. Realtor.com calculates the monthly payment for a median-priced property financed with a 30-year loan is $550 greater than a year ago, a 46 percent rise. Read More

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MBA Weekly Applications Survey April 20, 2022: Rising Mortgage Rates Push Down Applications. Market Composite Index down 5.0 percent from the previous week on a seasonally adjusted basis.

Rising mortage rates

MBA Weekly Applications Survey April 20, 2022: Rising Mortgage Rates Push Down Applications

Mortgage application activity fell last week due to the highest mortgage rates in more than a decade, according to the Mortgage Bankers Association’sAssociation’s Weekly Mortgage Applications Survey for the week ending April 15TH.

The Market Composite Index fell 5.0 percent from the previous week on a seasonally adjusted basis. The refinance share of mortgage activity decreased to 35.7 percent of total applications from 37.1 percent as Refinance Index dropped by 8 percent. Moreover, the seasonally adjusted Purchase Index also fell by 3 percent. Read More

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Are we in Trouble? United States is dealing with the highest inflation in four decades. Bankers Lower Mortgage Demand Outlook for the Year

Person handed out the key

Mortgage bankers throughout the country are lowering their forecasts for the year as interest rates continue to rise, making homeownership even more expensive. According to the Mortgage Bankers Association, overall mortgage originations, including refinancing loans, will exceed $2.58 trillion in 2022, down 35.5% from 2021. 

The MBA’s estimate, which represents more than 2,000 companies in the industry, reflects some startling economic realities in the United States. The housing market is tight on supply, and prices are high. The United States is dealing with the highest inflation in four decades, and the Federal Reserve is hiking interest rates rapidly to keep it in check. Refinancing demand has dropped considerably in recent months as interest rates have risen. Applications to refinance a home loan declined 5% in the previous week, and the refinance proportion of overall mortgage applications fell to 37.1% from 38.8% the week before. Read More

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