U.S. house prices declined for a seventh consecutive month in January as rising interest rates continue to apply pressure to home prices as well as the housing market overall.
Data released on Tuesday revealed that the S&P CoreLogic Case-Shiller U.S. National Home Price index declined by 0.5% in January. On a yearly basis, the index climbed 3.8%; still down from the 5.6% rise in December.
Included in the report was the 20-City Composite index, which tracks price changes in the 20 largest metros in the United States. The 20-City Composite Index showed a 0.6% fall in January from the previous month, in turn rising 2.5% from the previous year.
“Financial news this month has been dominated by ructions in the commercial banking industry, as some institutions’ risk management functions proved unequal to the rising level of interest rates,” Craig Lazzara, Managing Director at S&P DJI, noted.
“Despite this, the Federal Reserve remains focused on its inflation-reduction targets, which suggest that rates may remain elevated in the near term.” Lazzara contended that mortgage financing and the “prospect of economic weakness” will remain factors that affect housing prices over the near future.