S&P CoreLogic Case-Shiller index shows home prices rose 6.4% in February | Wilnesh News

Although mortgage rates are now moving higher again, strong demand and tight supply continue to push home prices higher.

According to the S&P CoreLogic Case-Shiller National Home Price Index released on Tuesday, home prices rose 6.4% annually in February, rising again after a 6% annual gain the previous month. This is the fastest price increase since November 2022.

The 10-city composite index rose 8%, up from 7.4% last month. The 20-city composite index rose 7.3% annually, up from 6.6% in January.

“Following last year’s decline, U.S. home prices are at or near all-time highs,” said Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices. “For the third consecutive month, annual home prices rose in all cities. There have been increases, with four cities currently at all-time highs: San Diego, Los Angeles, Washington, D.C., and New York.”

Among the 20 cities in the index, San Diego saw the largest price increase, up 11.4% from February 2023. Portland, Ore., had the smallest index gain, at 2.2%.

“The Northeast, which includes Boston, New York, and Washington, D.C., has been the best-performing market over the past half year. As remote work benefited smaller (and sunny markets) during the first half of the decade, a return to the office may contribute to the outperformance of the Northeast metro market,” Luke said.

“This marks the second time since prices peaked in 2022 that home prices have moved higher in the face of economic uncertainty. The first decline came after the start of the Fed’s rate hike cycle. The second decline came after average mortgage rates After peaking in October last year,” he added.

The index records prices based on a three-month moving average, so it goes back to December, when mortgage rates hit recent lows. Expectations for the Fed to cut interest rates were also strong at the time. This may prompt buyers to rush in.

Since then, however, mortgage rates have increased by nearly a percentage point. In addition, stubborn and persistent inflation has reduced expectations that the Federal Reserve will cut interest rates significantly this year.