Growth in US single-family home prices cooled further in November, surveys showed Tuesday, which coupled with falling mortgage rates could help stem the housing market’s slide into a deeper recession.
The S&P CoreLogic Case Shiller National Home Price Index, which covers all nine US census divisions, rose 9.2% year-on-year in November, reversing from a 10.7% rise in October.
The increase in remote work during the COVID-19 pandemic triggered a boom in the real estate market, driving prices to all-time highs.
The Fed’s fastest rate hike cycle since the 1980s has pushed housing into recession. However, falling mortgage rates and slowing house price inflation have raised hopes that the housing market may soon stabilize, albeit at depressed levels.
The interest rate on 30-year fixed mortgages declined to an average of 6.13% last week, the lowest level since mid-September, according to data from mortgage finance agency Freddie Mac.
The rate was down from 6.15% the week before and is down from an average of 7.08% at the beginning of the fourth quarter, which was the highest since 2002. However, it is still well above average. of 3.55% registered in the same period last year.
“As rates have been coming down in the first few weeks of the new year, property market activity has begun to thaw, but 2023 is likely to remain a relatively quiet year for housing as many expect prices to soften.” stabilize at best,” said Nicole Bachaud of Zillow in Seattle.
A separate report from the Federal Housing Finance Agency showed house prices rose 8.2% in the 12 months through November after advancing 9.8% in October.
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