WASHINGTON (Reuters) – U.S. single-family house prices increased moderately in November as higher mortgage rates curb demand, boosting the supply of homes on the market.
House prices rose 0.3% on a month-on-month basis after an upwardly revised 0.5% increase in October, the Federal Housing Finance Agency said on Tuesday. Prices were initially reported to have risen 0.4% in October.
They advanced 4.2% in the 12 months through November, following an unrevised 4.5% gain in October.
“Annual house price gains continued to moderate in November, with all nine Census divisions showing slower pace of growth than a year ago,” said Anju Vajja, deputy director for FHFA’s Division of Research and Statistics.
“The slowdown in price growth is likely due to higher mortgage rates contributing to cooling demand.”
Rising supply is slowing the pace of house price appreciation. New housing inventory is at a 17-year high, while the supply of previously owned homes on the market has improved considerably.
All census regions reported annual house price gains, with New England and the Middle Atlantic regions topping the list. Prices rose moderately in the West South Central region.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)
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