Tuesday, October 28, 2025

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

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Related News

Liberal Government Finally Unveils New Canada Emergency Rent Subsidy After Previous Program Failed to Gain Traction

Canadian businesses that have been facing significant difficulties in meeting their debt obligations have finally...

Tuesday, November 24, 2020, 02:41:00 PM

Federal Mortgage Rule Change Makes Homebuyers With Good Credit Subsidize Discounts Given To High-Risk Borrowers

A little-noticed change in federal mortgage rules would provide cheaper rates for home purchasers with...

Friday, April 21, 2023, 03:10:00 PM

The Budding “Coal War” Between US And Saudi Arabia

What used to be a strategic alliance is fast becoming a sour tinderbox for a...

Saturday, October 22, 2022, 11:10:00 AM

Mortgage Trigger Rates, Illustrated

Variables, adjustables, and the Mortgage Mafia’s itchy trigger rate finger. The Canadian housing boom boomed...

Saturday, November 26, 2022, 09:00:00 AM

US Homebuilder Sentiment Reaches Record High for Second Consecutive Month

The US housing construction industry has remained immune to the ups and downs of the...

Monday, October 19, 2020, 01:41:00 PM