In another sign that the typical end-of-summer cooling off of the housing market is occurring in an otherwise atypical year, the rate at which home prices climbed in August stayed relatively flat compared the previous month. Prices rose 19.8 percent on a year-over-year basis in August. This was the same rate of home price growth as July, according to the S&P CoreLogic Case-Shiler Index.
This marks the first instance since early 2020 when the annual growth rate in home prices hasn’t increased. There were some pockets of the national housing market that did see annual gains, including in San Diego. The greater San Diego region saw a 26.2 percent increase in home prices on a year-over-year basis. This was only exceeded by Phoenix with 33.3 percent.
Consistency in low mortgage rates and steadfast demand for housing, particularly on the low end of the market is keeping prices elevated but some experts are anticipating a gradual cooling as the winter months approach.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 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 (877) 700-0942 and your questions may be featured in an upcoming article.
