During the peak of US mortgage rates, an important housing price index has achieved the highest increase of the year.

The shortage of housing supply has led to a continuous increase in house prices in the United States since hitting bottom in January of this year. According to the latest data from the S&P/Case-Shiller, a key housing price index in the United States, house prices in the country continued to rise in October, marking the ninth consecutive month of growth and setting a new record. This is happening at a time when mortgage loan interest rates are at their highest level in over 20 years. The specific data for the October housing price index in the United States are as follows: The S&P/CS National Home Price Index rose by 4.8% YoY, the largest monthly increase so far this year, significantly higher than the 4% YoY increase in September. The seasonally adjusted MoM increase in the national home price index was 0.6%. The S&P/CS 20-City Composite Home Price Index rose by 4.87% YoY, also the largest monthly increase so far this year, slightly better than the expected 4.85% YoY increase. The seasonally adjusted MoM increase in the 20-city composite home price index was 0.64%, with an expected increase of 0.6%. The previous value for September was 0.67%. The FHFA House Price Index rose by 0.3% MoM, with an expected increase of 0.5%. The previous value for September was 0.6%. Among the top 20 cities in the United States, Detroit saw the largest YoY increase in house prices at 8.1%, followed by San Diego with a growth rate of 7.2%. New York came in third with a growth rate of 7.1%. Portland, Oregon, saw a YoY decrease of 0.6%, the only city among the top 20 to experience a decline in house prices. In terms of MoM trends in the 20-city composite home price index, Miami and Detroit saw the largest MoM increases, while the West Coast experienced a decline. San Francisco, Portland, and Seattle performed the worst. Brian Luke, Managing Director of Commodities, Real Assets, and Digital Assets at S&P Dow Jones Indices, said in a press release: House prices continue to rise as mortgage loan interest rates reach their highest level in this cycle. In October, house prices in the United States rose at the fastest pace this year. We are experiencing widespread price increases across the country, with 19 out of 20 cities showing stable growth. With mortgage loan interest rates expected to decline and the Federal Reserve taking a slightly more accommodative stance, homeowners may see further appreciation in house prices. Despite a significant increase in mortgage loan interest rates in October, house prices in the United States remain strong. According to data from Mortgage News Daily, on October 19th, the average interest rate for a 30-year fixed-rate mortgage surpassed the 8% mark, the highest level in over 20 years. However, interest rates have since declined in November and December. In December, with market expectations of a significant interest rate cut by the Federal Reserve next year, mortgage rates have decreased even more. Currently, 30-year fixed-rate mortgage loans are at around 6.7%. The high mortgage interest rates have impacted the US real estate market, causing potential buyers and sellers to adopt a wait-and-see approach. Due to the scarcity of housing inventory, prospective homebuyers often need to engage in bidding wars to secure their desired properties. The shortage of supply is a key factor driving up housing prices. As the current mortgage rates are more than double what they were at the end of 2021, many homeowners who have locked in low mortgage rates are reluctant to sell their properties, resulting in a lower-than-normal level of housing supply in the market.