For the fourth consecutive month, the rate at which home prices increased in July hit a new record high. According to the latest S&P CoreLogic Case-Shiller National Home Price Index released this week, home prices rose 19.7 percent on a year-over-year basis. This is the highest annual rate of price growth since the index first launched in 1987 and fourth month in a row to reach a record high.
July also marked the fourteenth consecutive month of rising home prices. Phoenix continued to top the list with the sharpest home price increases with a growth rate of 32.4 percent. This was followed by San Diego with prices at 27.8 percent above where they were last year.
High demand and fierce competition is the driving factor behind the rapid increases in prices. However, experts anticipate a slight cooling in the housing market as fall approaches and demand levels out. Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.
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