Wall Street Journal writer Laura Kusisto reported on Tuesday that, “Home prices climbed strongly in November, as price growth showed no signs of slowing even after mortgage rates began to tick up during the month.
“The S&P CoreLogic Case-Shiller Indices, covering the entire nation rose 5.6% in the 12 months ended in November, up slightly from the revised 5.5% year-over-year increase reported in October.”
The Journal article noted that, “Home prices set a record in September and have continued climbing by more than 5% year-over-year since then.”
Ms. Jusisto added that, “Higher mortgage rates tend to put a damper on price growth because they drive up the monthly cost of a mortgage. That combined with the fact that prices have risen faster than incomes could pose challenges to the market this year.
“Cooling rent growth also could put downward pressure on home prices as purchases begin to look less attractive than renting. Developers, meanwhile, could shift more to single-family building, easing supply pressures.”
