Nationwide home prices over thee summer climbed higher than experts had predicted. CoreLogic's Home Price Index grew 1.1 percent in July, on a month-over-month basis and 6 percent more than the same month last year. This exceeds CoreLogic's original predication for July of just 0.68 percent.
The real estate data company forecasts an additional 5.4 percent gain in home prices over the next 12 months, citing historically low mortgage rates as a fuel for demand in the coming year.
"If mortgage rates continue to remain relatively low and job growth continues, as most forecasters expect, then home purchases are likely to rise in the coming year," said Dr. Frank Nothaft, CoreLogic's chief economist. "The increased sales will support further price appreciation."
For next month, prices are expected to rise 0.4 percent – indicating that while experts believe home values will continue to climb, the rate of appreciation may be slowing.
Currently, mortgage rates are near all-time lows with conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.75 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.