U.S. home price gains slowed for the 13th straight month in April, evidence that weaker demand is keeping prices in check even as mortgage rates fall.
The S&P CoreLogic Case-Shiller 20-city home price index rose 2.5% in April from a year earlier, down slightly from an annual gain of 2.6% in March. That’s the smallest increase in nearly seven years.
Sales of existing homes fell last year as mortgage rates climbed to 5%, but sales appear to have levelled off this year. Borrowing costs have fallen back below 4%, which has enabled more would-be buyers to afford homes. Prices are now increasing more slowly than wages, which also lifts affordability.
Price increases have also cooled in several formerly hot markets, including Seattle, where prices were unchanged from a year ago.