Home prices jumped nearly 20% in February,
but a slowdown may be coming!
Home prices increased 19.8% in February year over year, according to the S&P CoreLogic Case-Shiller
national home price index. That is up from the 19.1% annual increase in January and is the third-highest reading
in the index’s 35-year history.
Craig Lazzara, managing director at S&P DJI, in a release said “The post-Covid resumption of general
economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response.
We may soon begin to see the impact of increasing mortgage rates on home prices.”
“Today’s S&P Case Shiller Index highlights a housing market experiencing a renewed sense of urgency in
February, as buyers worked through a small number of homes for sale in an effort to get ahead of surging
mortgage rates. The imbalance between strong demand and insufficient supply pushed prices higher,” said
George Ratiu, manager of economic research at Realtor.com
For a median-priced home financed with a 30-year loan, the monthly payment is $550 higher than a year
ago, an increase of 46%, according to calculations by Realtor.com
“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,” added Ratiu.