Home prices continued to surge higher in February, but rising mortgage rates may make that kind of growth unsustainable in the months ahead.
Highlights
- Home prices increased 19.8% in February year over year, according to S&P CoreLogic Case-Shiller index.
- Sun Belt cities continued to see the highest gains, with Phoenix, Tampa, Florida, and Miami seeing highest gains.
- Minneapolis, New York and Washington, D.C., saw the smallest price gains, although they were still in the double digits.
- Rising mortgage rates may make that kind of growth unsustainable in the months ahead, experts say.
- The macroeconomic environment “is evolving rapidly and may not support extraordinary home price growth for much longer,” says S&p DJI managing director Craig Lazzara, in a release.