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Economic Report: Home price growth falls in October, as market feels effect of high mortgage rates

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The numbers: The S&P CoreLogic Case-Shiller 20-city house price index rise fell 0.5% in October, its fourth monthly decline. 

Year-over-year appreciation rose 8.6%, slowing from 10.4% in the previous month.

A broader measure of home prices, the national index, fell a seasonally adjusted 0.3% in October from September.

Key details: Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in October. All 20 cities reported lower price increases.

San Francisco and Seattle reported the lowest year-over-year gains, which have seen prices fall by more than 10% from a peak in May.

Big picture: Months of weaker housing data are finally hitting home prices.

Housing is in a slowdown, but affordability hasn’t returned: Homes are still expensive, as mortgage rates remain above 6%, and inventory of homes available for sale remains low.

What S&P said: “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be aheadwind for home prices,” Craig J. Lazzara, managing director at S&P DJI, said.

“Given the continuing prospects for a challenging macroeconomic environment, prices may well continue to weaken,” he added.

Market reaction: The Dow Jones Industrial Average
DJIA,
+0.53%

and the S&P 500
SPX,
+0.59%

were up in early trading on Tuesday. The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.826%

rose above 3.81%.

The New York Post: Republican congressman-elect George Santos admits to lying about his biography, saying he only claimed to be Jew-ish and not Jewish

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