Annual U.S. House Price Growth Slows to Weakest September Pace Since 2011, According to First American Data & Analytics Monthly Home Price Index Report

Mark Fleming, Chief economist at First American

“Annual house price growth dipped to its weakest September pace since 2011, but prices continue to rise across all three price tiers.”

Mark Fleming, Chief economist at First American

“The recent increase in mortgage rates may further constrain affordability and strengthen the rate lock-in effect, limiting both the demand and the supply of homes for sale. Homeowners’ ability to remain in their homes and become neither a seller nor a subsequent buyer, rather than sell into a higher-rate market, continues to put a floor under prices.”

Mark Fleming, Chief economist at First American

“Luxury house price growth outpaced starter-home price growth in roughly 70 percent of the top markets we track.”

Mark Fleming, Chief economist at First American

“That gap reflects how higher mortgage rates affect buyers differently. Buyers at the lower end of the market tend to have less room to absorb higher monthly payments, while luxury buyers are generally less constrained by financing costs. The long-term shortage of affordable homes continues to support starter-home prices, but today’s affordability pressures are limiting how quickly those prices can rise.”