US home price gains reaccelerated in January after easing off slightly toward the end of last year.
- Home prices jumped 19.2% year-over-year in January, from 18.9% in December. The 10-city Composite annual increase was 17.5%, slightly higher than 17.1% in the prior month. The 20-city composite index increased 19.1% from 18.6% in December.
- Phoenix, Tampa, and Miami reported the biggest annual gains at 32.6%, 30.8%, and 28.1%, accordingly. Sixteen of the 20 cities posted higher price increases in the year closing of January 2022 compared to the same period last year.
- Washington, D.C., Minneapolis, and Chicago reported the smallest annual gains despite being double digits from a year earlier.
- Tight supply and strong demand are beating the rising mortgage rates, which would usually reduce some momentum out of the housing.
Mortgage rates started to increase in January. The average rate on the 30-year fixed ended 2021 at nearly 3.25% and ended January at 3.68%. It is now averaging 5%.
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Source: S&P Dow Jones Indices