US annual house prices slow again as 30-yr fixed rate mortgage jump to 6.58%

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US annual house prices slow again as 30-yr fixed rate mortgage jump to 6.58%

Prices of US single-family homes, the most lucrative sector in US homebuilding industry, fell further in September as a higher mortgage rate seems to be sapping demands at a breakneck pace. According to US mortgage buyer Freddie Mac, as of last Friday, 30-year fixed-rate mortgages averaged at 6.58 per cent, gaining as much as 3.48 percentage points year-to-date, while 15-year fixed-rate home loans stood at 5.9 per cent, taking a giant leapfrog of 3.48 percentage points year-to-date.

Amid such rancorous landscape in US homebuilding market with first-time buyers having been failed even to take a gander into the industry, a survey had revealed on Tuesday that US single-family home prices had depreciated further in September as beforementioned.

If truth is to be spoken, latest backlash in US single-family housing market came against the backdrop of an aggressive Federal Reserve which has shown no materialistic intent so far to sway away from its hawkish rate-hike cycle.

The US Central Bank’s benchmark interest rate is expected to hit a 5.0 per cent mark by early-2023, which eventually had spurred up mortgage rates.

US single-family home prices fall further last month

According to S&P CoreLogic Case Shiller national home price index, US monthly home prices dipped 0.8 per cent on a month-on-month basis in September, US single-family house prices rose as much as 12.9 per cent back in August, while US single-family house prices had declined for the first time in nearly four years on July this year.

Meanwhile, followed by the release of the data, addressing to a aggressive US Fed, a managing director at S&P DJI, Craig Lazzara said in a statement, “As the Fed continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable.

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