Home prices in May were higher than in the same month a year ago.
The housing market is cooling due to higher mortgage rates and concern over inflation. The annual gain was over 20% in April.
The 20-city index decreased from April to May.
The three cities with the largest increases were Dallas, Miami and Miami. The 12 months that ended in May had higher prices than the 12 months that ended in April. All of the 20 cities in the survey were seeing increases in their annual gains.
Craig Lazzara, managing director at S&P DJI, said in a release that the growth rates are still robust despite the fact that they have slowed.
As our May data were gathered, we noted that mortgage financing has become more expensive due to the Federal Reserve raising interest rates. Home price growth may not be supported by a more challenging macroeconomic environment for a long time.
The average rate on a 30-year fixed loan has been going up since January. It went up just over 6 in June and has since gone down. The recent inflation in home prices, which are up 40% since the start of the coronaviruses epidemic, has made it difficult to afford a home. Potential buyers have stopped showing up.
Existing home sales have been down for five months in a row. With less competition, houses that would have flown off the market within hours last year are still on the market. The share of homes seeing price cuts has doubled from a year ago as homeowners want to close a deal before more buyers leave the market.
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