Home prices rose annually in August, but the rate of increase slowed for the fourth consecutive month, according to the latest data from CoreLogic.
Home prices increased 13.5% annually in August, the 127th consecutive month of gains but also the lowest annual increase since April 2021, according to the CoreLogic Home Price Index (HPI). On a monthly basis, home prices decreased 0.7% from July to August.
This comes as higher mortgage rates continue to cool homebuyer demand and slow the housing market. Mortgage rates ended August in the mid-5% range, and have since risen higher, according to Freddie Mac data.
"The increased cost of homeownership has dampened buyer demand and caused prices to decelerate at a faster pace than initially expected," Selma Hepp, CoreLogic interim lead of the Office of the Chief Economist, said.
If you want to take advantage of your increased home value, you could consider pulling out money through a cash-out refinance. You can visit Credible to find your personalized interest rate without affecting your credit score.
These cities saw the highest home price gains
Cities in Florida had higher home price increases than other areas of the U.S., according to CoreLogic. Miami posted the highest annual gain of the 20 largest metros with a 27.1% increase. This was followed by Tampa, which dropped to the second spot with its 26.9% annual increase.
The states with the highest annual home price gains were Florida and Tennessee, with 26.4% and 20%, respectively. North Carolina ranked third with an annual increase of 19.9% while Washington D.C. saw the smallest increase of just 2.4%.
"Housing markets on the West Coast and in the Mountain West, as well as second-home markets, recorded particularly strong price growth in the summer of 2021 but were the first to see month-over-month price declines during the same period this year," Hepp said.
If you have seen significant home price growth over the past year and want to tap into your equity, you could consider using a cash-out refinance. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.
Home price gains to slow over the next year
Over the next year, home price growth is expected to slow significantly, according to CoreLogic. Annual home price gains are forecasted to reach 3.2% by August 2023. And the impact could be even more significant in Florida markets, compared to the rest of the U.S., due to Hurricane Ian, the report said.
And as mortgage rates rise, more homeowners could be locked out of the housing market.
"While decelerating price growth and price declines benefit younger potential homebuyers, mortgage rates that are approaching 7% may cut many hopefuls out of the picture," Hepp said.
If you want to take equity out of your home before rates rise further, you could consider applying for a cash-out mortgage refinance. To see if this is the right option for you, contact Credible to speak to a home loan expert and get all of your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at email@example.com and your question might be answered by Credible in our Money Expert column.