Market Update: Rates Slide to 2-Month Lows and Home Price Appreciation Grows

Blog posted On November 28, 2023

Last week, average rates officially brushed two-month lows. Though they climbed slightly higher on Friday, they recovered lost ground yesterday. Also released yesterday was the new home sales report for October, which showed a slowdown but had some hopeful hints as well. This morning, the Case-Shiller home price index revealed that home prices are still climbing.

The numbers

New home sales slipped 5.6% month-over-month in October after a notable gain of 8.6% in September. Though the seasonally adjusted annual rate of new sales fell to 679,000, the number is still stronger than it was in August and higher than it was this time last year. The Case-Shiller home price index showed that home price appreciation is still strong as well, an encouraging sign for buyers who are debating if a home purchase is ‘worth it.’ On a month-over-month basis, home prices rose 0.7%. Year-over-year, homes appreciated 3.9%.

What it means for you

Home price appreciation is a key asset for homeowners that can help boost their home value and equity. So the higher the Case-Shiller, the better – even if you’re buying. Though you may see it as a potential deterrent (higher home prices, lower affordability), it means that you’ll gain equity faster and have more money in one year than if you continue renting.

Later this week

Also coming up this week is the Fed’s favorite method of measuring inflation – the personal consumption expenditures (PCE) index, which is expected to continue declining, as is consumer spending, and personal income. Pending home sales and construction spending are also scheduled for release later this week.

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