With strong demand from buyers, home price gains are continuing to climb towards record highs. According to data from CoreLogic’s Home Price Index, prices for homes in the U.S. soared 7.3 percent in the 12 months ended October This is the fastest rate of price appreciation since April 2014.
A chronic shortage of homes on the market is the biggest culprit behind the rapid price growth. Buyers are competing with one another for the few available homes for sale and a growing number of listings are ending with multiple offers and bidding wars.
Some relief may be on the way, however, in the form of new home construction. There has been a recent surge in new construction projects nationwide as the National Association of Home Builders reports builder confidence hit its third month of record highs.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.