Record-breaking Home Prices Defy Low Inventory and High Mortgage Rates

US home prices reached a new high in May, driven by deep inventory constraints, according to a report by Black Knight. Prices increased 0.7% from April to an annualized rate of 8.9%, with active listings declining sharply in 95% of major markets. The low inventory levels have made the housing market tough for buyers, leading to rising mortgage rates and pushing prices higher. While new construction offers some hope, affordability is close to hitting its lowest point since the Reagan era, with mortgage rates remaining high and deterring current homeowners from listing their properties.