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Low Rates and Rising Income Boosted Home Price Growth in January

Tuesday, March 3, 2020

Home prices nationwide accelerated on an annual basis by 4.0 percent in January according to CoreLogic's Home Price Index (HPI). Annual appreciation has been trending higher since May as falling interest rates fueled demand. Month-over-month gains slowed to 0.1 percent in January, down from an 0.3 percent increase in December and 0.5 percent in November. CoreLogic's chief economist Dr. Frank Nothaft said, "January marked the third consecutive month that annual home price growth accelerated in our national index, as low mortgage rates and rising income supported home sales. In February, mortgage rates fell to the lowest level in more than three years, which likely will spur additional home shopping activity and price appreciation."

 

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