U.S. home prices increased 1.1% in February compared with January and increased 6.8% compared with February 2015, according to CoreLogic’s home price index report.
Currently the firm is forecasting that home prices will increase 0.6% from February to March and by 5.2% from February 2016 to February 2017.
“Fixed-rate mortgage rates dropped more than one-quarter of a percentage point in the first three months of 2016, and job creation averaged 209,000 over the same period,” says Frank Nothaft, chief economist for CoreLogic, in a release. “These economic forces will sustain home purchases during the spring and support the 5.2 percent home price appreciation CoreLogic has projected for the next year.”
“Home prices continue to rise across the U.S. with every state posting year-over-year gains during the last 12 months,” adds Anand Nallathambi, president and CEO of CoreLogic. “Improved economic conditions and tight inventories continue to drive exceptionally strong gains in many markets, especially for homes priced below $500,000.”