Home prices

The steep ascent in borrowing costs, combined with high home prices across markets, is sidelining more prospective buyers.

But the amount relative to housing costs actually decreased from the previous year.

Recent affordability and interest rate trends led to “clear evidence” of discouragement among potential consumers in the purchase market in the first three months of 2022, according to the National Association of Home Builders.

One Cupertino broker noted a small shift in the market, with buyers being more particular and willing to back out of deals.

First American’s Real House Price Index showed a record increase, reflecting both elevated home prices and fast-rising interest rates.

Sales of previously owned U.S. homes fell in March to the lowest since June 2020 as historically low inventory paired with rising mortgage rates curbed purchases.

Researchers at the government-sponsored enterprise noted the role rising rates are playing in increasing housing costs in its report, now offered publicly for the first time.

Nationally, prices jumped 19.2%, the fourth-biggest jump in data going back 35 years.

Federal Reserve Governor Christopher Waller said longer-run structural issues will continue to put upward pressure on home prices and rents even as the central bank begins a campaign to raise borrowing costs.

Sales of new U.S. homes fell in February for a second month, suggesting high prices and rising mortgage rates may be keeping prospective buyers on the sidelines.