Kiplinger Housing Outlook: Home Prices Continue to Rise

High prices and rising mortgage rates weigh on home buyers.

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Home price growth continues to pick up amid a shortage of homes for sale. The S&P CoreLogic Case-Shiller National Home Price Index, which measures the prices of existing homes across the nation, rose 6.4% in February from a year earlier, after a 6% gain the previous month. On a month-over-month, seasonally adjusted basis, home prices rose 0.4% — the 13th consecutive monthly increase. The fairly large gain in house prices in February points to a rebound in price growth driven by the fall in mortgage rates that started at the end of last year. While the dip in mortgage rates to below 7% was short-lived, it helped house prices rise at the fastest pace since November 2022. Looking ahead, the inventory of existing homes for sale will stay relatively low. That will push home prices higher this year as demand remains steady, even as mortgage rates start rising again.

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Rodrigo Sermeño
, The Kiplinger Letter

Rodrigo Sermeño covers the financial services, housing, small business, and cryptocurrency industries for The Kiplinger Letter. Before joining Kiplinger in 2014, he worked for several think tanks and non-profit organizations in Washington, D.C., including the New America Foundation, the Streit Council, and the Arca Foundation. Rodrigo graduated from George Mason University with a bachelor's degree in international affairs. He also holds a master's in public policy from George Mason University's Schar School of Policy and Government.