Home prices in the United States have reached their largest year-over-year increase since the Federal Housing Finance Agency Home Price Index was created more than a decade ago. Nationwide, home prices have risen 18.5 percent as of Q3 2021 compared to last year. This is up 4.2 percent from the previous quarter.
Some states, including Nevada, Arizona, New Mexico and Utah saw annual price increases closer to 25 percent in the third quarter of this year. The FHFA reports that the staggering annual increases in home prices in the U.S. is attributable to strong consumer demand and a limited supply of homes.
Experts expect a slowdown in the rapid rate of home price appreciation is on the horizon. Although demand remains unseasonably high this quarter, sales have moderated slowly since July.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 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) 700-8888 and your questions may be featured in an upcoming article.
