Home prices rise for first time in months in sign of market stabilizing

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Home prices rose in February amid higher demand and lower inventory in a sign that the housing market may be stabilizing after crashing under the weight of soaring mortgage rates and dampened demand.

February’s 0.16% increase is the first price growth in eight months, according to a report released by Black Knight on Monday. The report notes that demand was spurred by a dip in mortgage rates and that inventory levels continued to deteriorate in February, putting pressure on home prices across the country. The news is a glimmer of hope as several economic forecasters predict housing prices in some major markets will come crashing down this year.

“The purchase market increased when rates declined in the early part of the month, and borrowers were quick to take advantage of limited inventory. In many areas of the country, that dynamic — low inventory and a modest rise in demand — led to an uptick in home prices,” Andy Walden, Black Knight’s vice president of enterprise research, said.

In other housing news, sales of new homes increased slightly from January to February, a sign that buyers might be reentering the market amid lower mortgage rates, according to data released late last month by the Census Bureau. The Fed once again hiked interest rates last month by a modest quarter of a percentage point, even despite the uncertainty from the collapses of SVB and Signature Bank. That ultimately means more pressure on mortgage rates this year.

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Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

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