US home‑price growth loses steam in March amid rising mortgage rates

(Sharecast News) - US home‑price growth slowed in March, according to the latest S&P/Case‑Shiller data, with the national index rising 0.7% year‑on‑year, down from 0.8% in February. S&P said more than half of the 20 major US housing markets recorded annual declines, pointing to a "broadening and deepening housing slowdown". With consumer inflation running roughly 3.3% in March, home values fell in real terms for the tenth consecutive month.

Chicago remained the strongest market with a 6.1% annual gain, ahead of New York at 4% and Cleveland at 3%, while Seattle was the weakest performer, down 2.5% year‑on‑year, with Denver, Tampa, Dallas and Phoenix also posting declines. Los Angeles and Washington also slipped into negative territory.

S&P highlighted the widening divergence between regions, noting that Midwest and Northeast markets were still seeing modest growth while much of the Sun Belt and West continued to weaken.

On a monthly basis, the national index rose 0.7% before seasonal adjustment, while the ten‑city and 20‑city composites gained 1.2% and 1%, respectively. After seasonal adjustment, however, the national and 20‑city indices both fell 0.2%, and the 10‑city edged down 0.03%. Over the past six months, national prices have risen just 0.3%, matching the prior half‑year and signalling a market "nearly at a standstill".

S&P also noted that mortgage rates have resumed climbing, with the 30‑year fixed rate rising back to around 6.4% by late March, further tightening affordability for buyers.













Reporting by Iain Gilbert at Sharecast.com