Price jumps slow their pace
Expect home price growth to slow even more as we head into 2019. According to a new forecast, prices will likely increase 4.8 percent by November 2019 — a dip from this year’s increase of 5.1 percent.Verify your new rate (Jun 1st, 2020)
Rates dampen home prices
According to the latest CoreLogic Home Price Insights Report, home prices jumped 5.1 percent between November 2017 and November 2018. By November of this year, that growth rate should slow to 4.8 percent, CoreLogic’s experts say.
Frank Northaft, chief economist at CoreLogic, much of this slowing appreciation is due to higher mortgage rates.
“The rise in mortgage rates has dampened buyer demand and slowed home-price growth. Interest rates for new 30-year fixed-rate loans averaged 4.9 percent during December, the highest monthly average since February 2011,” Nothaft said. “These higher rates and home prices have reduced buyer affordability. Home sellers are responding by lowering their asking price.”Verify your new rate (Jun 1st, 2020)
Highest jumps in home price
CoreLogic also looked at annual home price growth at the state level. According to the findings, Nevada buyers saw the biggest increase, with prices rising 11.1 percent since November 2017.
Idaho also saw an 11 percent jump, while Utah home prices rose the third-most in the nation, with an 8.8 percent uptick. South Dakota was the only state to not see an increase in home prices over the year.
At the metro level, Las Vegas home prices increased the most, jumping 11.7 percent. In Denver, prices rose 6.6 percent, and in San Francisco, they jumped 6.9 percent. Many big cities — including Houston, San Diego, Chicago, Miami and Washington, D.C. — saw price jumps lower than the national average this year.
Get today’s mortgage rates
Shopping around for your mortgage can help you save — no matter where home prices might go. Shop around and see what mortgage rates you qualify for today.Verify your new rate (Jun 1st, 2020)