US Housing Market: Mixed Signals as Home Prices Fluctuate
Home price growth in the US slowed to its lowest levels since 2012, with an increase of 2% in April, according to CoreLogic. This marks the 135th consecutive month of annual gains but the sixth straight month of single-digit increases. Factors such as mortgage rate volatility and a lack of for-sale homes have contributed to the cooling of home price growth. CoreLogic predicts that home price growth in 2023 will fall in line with the historical 4% annual average. However, they also forecast a 4.6% year-over-year increase from April 2023 to April 2024. The Federal Reserve's pause in interest rate hikes may be temporary, as Chairman Jerome Powell hinted at the possibility of further rate increases before the end of 2023.