Fox Business: Home Price Increase Matches Year-Over-Year Expectations

Despite October’s results, the gains may not be sustainable.

A recent survey sited by Reuters and Fox Business shows that U.S. single-family home price increases accelerated modestly during the month of October. The movement is in alignment with expectations, however, rising mortgage rates could mean that these gains aren’t sustainable.

The S&P CoreLogic Case-Shiller composite index of 20 major metropolitan areas rose by 5.1 percent in October on a year-over-year basis. That’s up from a downwardly adjusted 5 percent climb the month before.

“Home prices and the economy are both enjoying robust numbers,” said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices in an interview with Fox Business. “However, mortgage interest rates rose in November and are expected to rise further as home prices continue to out-pace gains in wages and personal income.”

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