U.S. Home Prices Rise at New Record Rate, Case-Shiller Shows

Abstract

The numbers: U.S. home prices rose again in March even as higher mortgage rates began to bite, leaving prices at all-time highs. The S&P CoreLogic Case-Shiller 20-city price index was up a record 21.2% year over year while the federal government's price tracker climbed 19% in the same span. The big picture: The record increases in home prices over the past few years is bound to slow with the Federal Reserve raising interest rates. Strong demand for housing is likely to keep prices elevated. Key details: The year-over-year increase in the 20-city Case Shiller prices index bested the previous record of 20.3% in February. Still, prices were up 12.9% in Washington, which had the smallest year-over-year gain. Looking ahead: Demand is waning-evident in weakening purchase applications and home sales-in response to sharply higher mortgage rates, which should provide some relief on prices," said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.