Rising mortgage rates and a low supply of homes for sale are two main reasons for the continued increase in prices, according to The Wall Street Journal (subscription).
- According to the National Association of Realtors, the median home price for single-family existing homes in the first quarter of 2022 was higher in 181 of 185 metro areas than it was in 2021.
- A shortage of homes for sale is helping increase home prices by prompting bidding wars between prospective buyers.
By the numbers: The median single-family existing-home sales price rose 15.7% from a year ago to $368,200, according to NAR.
- The average rate on a 30-year fixed-rate mortgage rose from 3.1% at the end of 2021 to 5.1% last week.
- The typical monthly mortgage for a single-family home rose from $1,064 a year ago to $1,383.
What’s next: Economists project that by the end of the year, rising mortgage rates will lead to a decline in home price growth.