Home values continued to climb in November, but in 2017 price appreciation is likely to slow due to rising interest rates, according to CoreLogic.
In November, home prices increased 7.1% year over year, CoreLogic said in its Home Price Index report released Tuesday. The index was also 1.1% higher than October’s revised figure.
Oregon and Washington experienced the highest year-over-year growth of any states at 10.3% and 10%, respectively. Connecticut was the only state to experience price depreciation in November, down 0.5%.
Looking ahead, CoreLogic forecasts that prices will only rise 4.7% year over year in November 2017, a reflection of the impact rising interest rates will have on the housing market.
“Last summer’s very low mortgage rates sparked demand, and with for-sale inventories low, the result has been a pickup in home-price growth,” Frank Nothaft, chief economist for CoreLogic, said in a news release . “With mortgage rates higher today and expected to rise even further in 2017, our national Home Price Index is expected to slow to 4.7% year over year by November 2017.”