Home Price Growth to Slow in 2017: CoreLogic

Mortgage

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.”

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