House Prices Continued to Rise in First Quarter

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.