Home prices increased 19.8% in February year over year up from the 19.1% annual increase in January according to the S&P CoreLogic Case-Shiller national home price index. The result is also the third-highest increase in 35 years since the index started.
“The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” wrote Craig Lazzara, managing director at S&P DJI, in a press release. “The post-Covid resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response. We may soon begin to see the impact of increasing mortgage rates on home prices.”
According to the latest report, the 10-city composite annual increased to 18.6%, up from 17.3% in the previous month. The 20-city composite was up 20.2%, rising from 18.9%. Phoenix, Tampa and Miami reported the highest year-over-year gains.
Now all 20 cities reported price increases in the year ending February 2022. In January, only 16 cities growth year-over-year.
According to calculations by Realtor.com a median-priced home with a 30-year loan will see a monthly payment increase of $550 than a year ago.
Mortgage rates have also climbed above 5% for the first time since 2010.