US home price growth hits new high in February: CoreLogic report
House prices jumped another 20% a year in February, according to new CoreLogic datahitting a new series high and scoring 12 consecutive months of double-digit gains.
Annual home price growth continues to hit new highs, according to the CoreLogic Home Price Index (HPI). At the state level, the highest annual increases were seen in the Sunshine State of Florida, followed by Arizona and Nevada. In fact, CoreLogic said no state in the country saw annual home prices fall in February.
“New listings have not kept up with the large number of families looking to buy, which has led to rapid and often above-list house sales,” said CoreLogic Chief Economist Frank Nothaft. . “This imbalance between an insufficient number of homeowners looking to sell versus buyers looking for a home has led to the record appreciation of the past 12 months.”
Homeowners can take advantage of rising home prices in today’s housing market by tapping into their home’s equity through a cash refinance. Visit Credible to find your personalized interest rate without affecting your credit score.
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Home price growth will slow in the year ahead, CoreLogic says
CoreLogic predicts U.S. home prices will rise 5% year-over-year over the next 12 months, but adds that rising interest rates will continue to drive away more buyers.
“Rising prices and mortgage rates are eroding affordability for buyers and should dampen demand in the coming months, causing price growth to moderate in our forecast,” Nothaft said.
Interest rates are also expected to continue to rise over the next two years as the Federal Reserve struggles to fight rising inflation. The Fed is count now raising rates up to three times in 2022, and recently raised rates for the first time since 2018. In fact, Treasury Secretary Janet Yellen said in a recent interview that consumers are likely to see numbers of “uncomfortably high” inflation over the next year.
Today’s average rate for a 30-year mortgage averages just under 5%, according to latest data by Freddie Mac. If you want to take advantage of the growing value of your home, consider cash-in refinancing. Visit Credible to compare multiple lenders at once and choose the one whose mortgage rate suits you best.
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How Homeowners Can Take Advantage of Rising Prices
As home prices soar, homeowners can take advantage of their home’s value in a number of ways. A cash refinance, for example, allows homeowners to tap into the equity in their home and potentially secure low interest rates to lower their monthly mortgage payment.
Borrowers can also consider a home equity line of credit (HELOC), which takes out a loan against the equity they own in the home. This allows consumers who already have a low interest rate to take out a line of credit without affecting the interest rate on their mortgage as a whole. HELOCs require borrowers to have good credit, have closing costs similar to a mortgage, have variable interest rates and the potential for foreclosure.
If you want to compare your loan options to see what best suits your financial situation, contact Credible to speak with a loan expert and get all your questions answered.
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