US single-family house prices increased in May, according to the Federal Housing Finance Agency. This rise, combined with higher mortgage rates, may make home ownership less affordable for many young people.
Price Increases
House prices rebounded 0.3% after a 0.1% dip in April. Prices increased 2.2% in the 12 months through May, supported by a shortage of previously owned houses available for sale, especially starter homes.
The average rate on the popular 30-year fixed-rate mortgage has increased by 60 basis points since the end of February. The rate averaged an 11-month high of 6.58% last week, according to mortgage finance agency Freddie Mac.
Monthly house prices jumped 1.4% in the East South Central region and rose 1.1% in the Mountain region. There were gains in the South Atlantic, Middle Atlantic, New England, West North Central, and West South Central regions. Prices fell in the Pacific and East North Central regions.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
