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After home prices began coming down in 2022, they are again ticking up, even as the interest rates for 15-and-30-year mortgages hit their highest levels over a decade.

As interest rates rise, some potential buyers may find themselves priced out of the housing market due to the increased cost of homes and mortgages, causing demand to decrease. This decrease in demand should, in theory, lead to a drop in prices due to the basic principles of supply and demand. However, the Federal Reserve has noted that many housing markets are experiencing a shortage of available homes. If prices do fall too much, demand could once again increase and push prices back up. In markets with more available homes, changes in demand will have a greater impact on price as buyers will have more options to choose from.

The Federal Housing Finance Agency (FHFA) publishes quarterly data that tracks changes in the prices of homes in the country’s 100 largest metropolitan areas. Of all areas, only a fifth have seen prices fall over the last year.

Read our full coverage for details on where prices are expected to fall in the short term.