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House Prices Shrug Off Higher Mortgage Rates To Hit Fresh All-Time High

US DATA

House price growth continued apace in January on an annual basis, per the S&P CoreLogic Case-Shiller and FHFA indices, suggesting that momentum in the housing market remains after rising mortgage rates induced temporary weakness in 2022 and early 2023.

  • The S&P CoreLogic index posted 6.03% Y/Y growth, below the 6.12% expected but up from 5.57% prior; the 20-City index was in line at 6.59% vs 6.60% prior and 6.15% prior. The FHFA purchases index (SA) rose 6.3% Y/Y, a slight slowdown from 6.6% prior but still marking robust gains.
  • The S&P CoreLogic indices are now at all-time highs on both the national and 20-city measures, having risen on a seasonally-adjusted basis, with a month/month dip in the FHFA bringing that index a little bit below the all-time high set in December.
  • While affordability concerns, including high mortgage costs, continue to present headwinds to housing activity, particularly to existing home sales, ongoing data suggests that they have not been sufficient to rein in house prices.

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House price growth continued apace in January on an annual basis, per the S&P CoreLogic Case-Shiller and FHFA indices, suggesting that momentum in the housing market remains after rising mortgage rates induced temporary weakness in 2022 and early 2023.

  • The S&P CoreLogic index posted 6.03% Y/Y growth, below the 6.12% expected but up from 5.57% prior; the 20-City index was in line at 6.59% vs 6.60% prior and 6.15% prior. The FHFA purchases index (SA) rose 6.3% Y/Y, a slight slowdown from 6.6% prior but still marking robust gains.
  • The S&P CoreLogic indices are now at all-time highs on both the national and 20-city measures, having risen on a seasonally-adjusted basis, with a month/month dip in the FHFA bringing that index a little bit below the all-time high set in December.
  • While affordability concerns, including high mortgage costs, continue to present headwinds to housing activity, particularly to existing home sales, ongoing data suggests that they have not been sufficient to rein in house prices.