The latest CoreLogic Home Price Index gained 3.6% year-over-year in May and a month-over-month increase of 0.9%.

There has been a 14-month trend of slowing growth for US house prices on a year-over-year basis; but that changed in May. The latest CoreLogic Home Price Index gained 3.6% year-over-year in May and a month-over-month increase of 0.9%. And the firm’s HPI Forecast suggests growth in price rises will continue. “Interest rates on fixed-rate home loans fell by nearly one percentage point between November 2018 and this May,” said Dr. Frank Nothaft, chief economist at CoreLogic. “This has been a shot-in-the-arm for home sales. Sales gained momentum in May and annual home-price growth accelerated for the first time since March 2018.” Although the month-over-month rise for June is expected to be 0.8%, slightly down from the previous month, it will mark a new all-time high for single-family home prices. Over the year, CoreLogic is forecasting a 5.6% gain for home prices. 

Source: Mortgage Professional America