US Home Prices Jump by Most Since 2006, Outpacing Fed’s Inflation Target

Home prices across the US rose by the most since 2006, as low mortgage rates and constrained supply continue to put added pressure on the housing market.

US housing prices jumped by 11.94% on a year-over-year basis in February, marking the eighth consecutive month of gains, following an increase of 11.2% in January. Record-low interest rates were the main driving factor behind the ongoing housing rally, as potential homeowners gained more purchasing power to upgrade their properties. The average rate on a 30-year mortgage dropped to 2.97% according to most recent data, falling closer in line to the record-low of 2.65% set in January.

Low interest rates, and remote work flexibility, have caught the attention of potential homebuyers, who flocked to the suburbs and rural areas in search of more spacious homes. The surge in demand— particularly for single-family homes— has put added pressure on the already-constrained housing supply, fuelling housing prices even higher.

Price appreciation was the highest in Phoenix and San Diego, but as noted below, the rate of inflation is multiples of the Federal Reserve’s mandate, with even the “cheapest” homes in America accelerating at 4x the inflation target. However, due to the lag in Case-Shiller’s data, the true impact of rising mortgage rates still remains unknown for the time being.


Information for this briefing was found via S&P Global. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

More Than 40% of Small Business Owners In the U.S. And Canada Could Not Pay Full Rent In November

Small business conditions may be more fragile than even bearish observers fear and seem to...

Wednesday, November 30, 2022, 06:30:00 AM

Canadian Housing Starts Fall 5.3% in October

The pace of housing starts across Canada is showing signs of losing momentum, which could...

Wednesday, November 17, 2021, 02:41:00 PM

Who Owns Nearly Half of Ontario’s Condo Market?

As it turns out, Ontario’s booming real estate market wasn’t booming because ordinary Canadians desperately...

Wednesday, February 8, 2023, 06:18:00 AM

US Homebuilder Confidence Falls From Record High as Buyers Face Affordability Challenges

As home prices across the US continue to skyrocket to record-breaking levels amid a surge...

Friday, December 18, 2020, 10:45:59 AM

Temporary Pier in Gaza Damaged, Suspending US Aid Deliveries

The US military’s efforts to deliver aid to the Gaza Strip have been temporarily halted...

Wednesday, May 29, 2024, 07:54:42 AM