According to the S&P CoreLogic Case-Shiller index, prices decreased 1% nationally in September compared to August, marking the third consecutive monthly decline. The index increased 10.6% on an annual basis in September, down from a 12.9% rate in August.
According to Craig Lazzara, managing director at S&P Dow Jones Indices, “as the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable.” “Home prices may well continue to weaken given the continuing prospects for a challenging macroeconomic environment.”
The 20-city composite increased 10.4% in September, following a gain of 13.1% the previous month, and the 10-city composite increased 9.7% annually, down from 12.1% in August.
The Case-Shiller index reports with a two-month delay, so it might not reflect the most recent market slowdown.
Prices are still higher than they were just a year ago, despite the fact that higher interest rates have made homeownership unaffordable for millions of Americans.
According to a different report released last week by the National Association of Realtors, the median price of a new home increased by nearly 15.4% from the same time last year to $493,000 in October.
According to the most recent information from mortgage lender Freddie Mac, the average rate for a 30-year fixed mortgage was roughly 6.58% for the week ending Nov. 23. Even though it is lower than the peak of 7% in September, rates are still higher than they were a year ago when they were at 3.10 percent.
Many first-time homebuyers have been priced out of the market by the sharp increase in borrowing costs combined with high home prices.