Mortgage

What’s happening with US home prices?

What's happening with US home prices?
Written by Publishing Team

However, despite the increase in home prices, CoreLogic expects home price gains to slow to a 2.8% increase by November 2022.

“While 2021 was a record year for US home price growth, for many potential buyers, the hot housing market will continue to exacerbate ongoing affordability challenges into the new year—and beyond,” CoreLogic said in a statement. Although home price growth remains at record levels, it is expected to slow over the next year. However, economic growth and inflation are likely to lead to increases in mortgage rates, which will further erode affordability.”

“Over the past year, we’ve seen one of the strongest seller markets in a generation,” said Frank Martell, President and CEO of CoreLogic. “While increased interest rates may help cool home buying activity, we expect 2022 to be another strong year with upward price growth continuing.”

“Interest rates on 30-year fixed-rate mortgages averaged a record low of 2.96% through 2021, helping to keep monthly payments low in the face of record-high home prices,” said Frank Nothaft, chief economist at CoreLogic. . “However, the Fed appears willing to allow interest rates to rise in 2022. Higher rates will intensify challenges to buyer affordability, particularly in overvalued domestic markets.”

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