U.S. home prices increased 1.1% in June compared with May and increased 5.7% compared with June 2015, according to CoreLogic’s home price index report, which includes distressed sales.
Currently, the firm is forecasting that home prices will rise by about 0.6% from June to July and increase 5.3% between June 2016 and June 2017.
“Mortgage rates dipped in June to their lowest level in more than three years, supporting home purchases,” says Frank Nothaft, chief economist for CoreLogic, in a statement. “Local markets with strong economic growth have generally had stronger home price growth. Among large metropolitan areas, Denver had the lowest unemployment rate and the strongest home price appreciation.”
“Home prices continue to increase across the country, especially in the lower price ranges and in a number of metro areas,” adds Anand Nallathambi, president and CEO of CoreLogic. “We see prices continuing to increase at a healthy rate over the next year by as much as five percent.”