A sign reading “Sale Pending” is posted in front of a home for sale in San Anselmo, California, on November 30, 2023.
Justin Sullivan | Getty Images News | Getty Images
According to the S&P CoreLogic Case-Shiller Home Price Index, home prices nationwide rose 4.8% in October compared to October 2022. That's a jump from September's 4% annual increase and represents the largest annual increase in 2023.
The 10-city group rose 5.7%, compared with a 4.8% increase the previous month. The 20-city composite rose 4.9%, compared with a 3.9% increase in September.
The rise in home prices came despite a sharp rise in mortgage rates in October. According to Mortgage News Daily, the average interest rate on the 30-year fixed loan was over 8% as of October 19th. That was the highest value in more than two decades. However, interest rates fell steadily through November and fell even more in December, with the 30-year fixed rate currently at around 6.7%.
“Home prices approached the highest mortgage rates of this market cycle and continued to rise,” said Brian Luke, head of commodities, real and digital assets at S&P DJI, in a press release. “As mortgage rates fall and the Federal Reserve takes a slightly more accommodative stance, homeowners could see more appreciation.”
Among the top 20 cities, Detroit saw the largest year-over-year home price increase in October, at 8.1%. This was followed by San Diego with an increase of 7.2% and New York with an increase of 7.1%. Home prices in Portland, Oregon, fell 0.6%, making it the only city in the index to report lower prices in October than a year ago.
“House price gains in the CoreLogic S&P Case-Shiller Index are up 7% year-to-date and are 1% above the 2022 peak, recouping all losses recorded in the second half of 2022,” said Selma Hepp , chief economist at CoreLogic . “With stronger seasonal gains in early 2023, annual house price increases are expected to accelerate this winter before slowing again next year.”
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