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July Home Prices Increase 5.5%, Breaking a Two-Year Record
Tuesday, September 1, 2020
Home prices grew in
July by the fastest rate in nearly two years, a 5.5 percent annual gain. According to CoreLogic's Home Price Index
(HPI), the month-over-month change was 1.2 percent. The company said it was "The
one-two punch of strong purchase demand - bolstered by falling mortgage
rates, which dipped below 3 percent for the first time ever in July -
and further constriction of for-sale inventory" that has driven upward pressure
on home price appreciation. "On an aggregated
level, the housing economy remains rock solid despite the shock and awe of the
pandemic. A long period of record-low mortgage rates has opened the flood
gates for a refinancing boom that is likely to last for several years,"
said Frank Martell, president and CEO of CoreLogic. "In addition, after a
momentary COVID-19-induced blip, purchase demand has picked up, driven by low
rates and enthusiastic millennial and investor buyers. Spurred on by strong
demand and record-low mortgage rates, we expect to see more home building in
2021 and beyond, which should help support a healthy housing market for years
to come."
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