Single-family house prices, in the U.S. fell further in January, which, combined with falling mortgage rates, may encourage buyers to return to the market.
Data released on Tuesday revealed that the S&P CoreLogic Case-Shiller national home price index, grew by 3.8% in January, marking the ninth consecutive month of decelerating annual home price rises.
The smaller gain can also be attributed to the big increase from 2016 being subtracted from the total. After accounting for seasonal variations, monthly costs declined 0.2% in January. This marked the sixth consecutive monthly decline.
The Federal Reserve’s aggressive interest rate hikes to manage excessive inflation have put pressure on the housing market, resulting in a seven-quarter decline in residential investment—the longest such decline since the bursting of the housing bubble in the wake of the Great Recession of 2007–2009.
But, mortgage rates have resumed their downward trend after the Fed indicated last week that it was close to suspending any increases in borrowing costs in response to financial market stress brought on by the collapse of two regional banks.
House prices in the Southeast continued their rapid annual climb.
Western housing prices have remained low.
In San Diego, Portland, San Francisco, and Seattle, annual home price declines were observed.
In previous years, home prices in the area climbed sharply.
