By Arlenys Tabare
This Tuesday, the Federal Housing Finance Agency (FHFA) reported that Single-family home prices in the United States increased 1.7% year-on-year in the last 12 months.
During the month of March, housing costs increased slightly by 0.1%, after remaining unchanged in February, following a surprise increase of 0.2% in January.
In general terms, according to the agency, Home prices in the first quarter of this year increased by only 1.7%; However, analysts point out that the chances of it continuing to rise are slim, as the market is adjusting to the drop in demand due to high mortgage interest rates.
In recent weeks, mortgage rates have skyrocketed, fueled by rising Treasury bond yields, which in turn are being fueled by soaring inflation due to the war in the Middle East, which has caused energy prices to rise.
Hence A 30-year fixed mortgage rate above 6.50% is driving future buyers away from the market, who expected that for the spring season offers would increase, cushioning the affordability crisis amid a sharp drop in inventory.
Given the situation in the real estate market, Anthony Smith, senior economist at Realtor.com, mentions that “The conflict in the Middle East continues to have a disproportionate influence on how investors assess the economic outlookand mortgage interest rates are adjusted accordingly,” he said.
On the other hand, the FHFA report also highlights that the high prices were not seen in all regions of the country; On the other hand, he highlighted that in five of these there was a decrease, as in the case of the western center-south.
Keep reading:
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- Sales of existing homes in the US increased just 0.2% in April
- Mortgage rates in the US increase again, showing strong volatility in the real estate market
