Home prices rose again in February as limited supply continued to prop up the market amid high mortgage rates and affordability challenges.
The S&P CoreLogic Case-Shiller National Home Price Index rose 0.3% over the prior month in February on a seasonally adjusted basis, easing from the 0.5% monthly gain recorded in January.
On an annual basis, prices nationally increased 3.9%, less than the 4.1% seen in January.
The index tracking home prices in the 20 largest US cities rose 0.4% in February from January, matching the monthly Bloomberg consensus estimate.
The 20-city index climbed 4.5% compared to last February, down from a 4.7% annual increase in the previous month.
“Even with mortgage rates remaining in the mid-6% range and affordability challenges lingering, home prices have shown notable resilience,” Nicholas Godec, head of fixed income at S&P Dow Jones Indices, wrote in a press release.
“Buyer demand has certainly cooled compared to the frenzied pace of prior years, but limited housing supply continues to underpin prices in most markets. Rather than broad declines, we are seeing a slower, more sustainable pace of price growth.”
Mortgage rates continue to hover around 6.8% as market volatility persists amid tariff-related news. The average 30-year fixed rate stood at 6.81% through last week, according to Freddie Mac, little changed from 6.83% a week earlier.