Fannie Mae chief economist Doug Duncan attributed the moderated pace of growth to the impact of higher mortgage rates on affordability. As of last week, the 30-year fixed-rate mortgage averaged 7.57%, according to Freddie Mac.
“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” Duncan said in a news release.
As the market transitions into the fourth quarter, a period characterized by a slowdown in house price appreciation, Duncan anticipates further moderation.
“It would be reasonable to expect some additional slowing in price appreciation, but the ongoing supply problems continue to drive the larger affordability challenge,” he noted.
The HPI, which offers insights into general single-family home price trends, is formulated by consolidating county-level data to generate both seasonally adjusted and non-seasonally adjusted national indices.
Source: mpamag.com