Even with Mortgage Rates Rising, Home Prices Continue to Climb
May 1, 2018
February’s S&P Case-Shiller Home Price Index reported a 6.3 percent increase nationally compared to a year earlier. This gain follows January’s 6.1 percent annual jump.
Analysts cite the critical shortage of homes for sale as the driving factor for the continued surge in home prices higher nationwide. Despite increasing mortgage interest rates, home prices continue to climb. Realtors claim prices are being driven entirely by very high demand and very low supply.
Home Inventories are down across the nation, and homebuilders, while increasing production slowly, are not coming anywhere close to meeting new demand according to industry experts. Builders are also not focused on the entry level, where the bulk of demand is, due to higher costs for land, labor, and materials.