Home prices increased only marginally in October, as the market felt the effects of an expected seasonal slump and elevated mortgage rates, CoreLogic reported.
The data aggregator also forecast that home prices wouldn’t grow at all in November, as those pressures continue to squeeze the housing market.
Home prices increased by only 0.2 percent in October compared to the previous month, according to the CoreLogic Home Price Index (HPI). On an annual basis, they jumped 12.5 percent in October, marking the 20th straight year-over-year increase in home prices.
Home prices will remain flat in November compared to October, but increase 12.2 percent year over year, according to the firm’s forward-looking CoreLogic Pending HPI.
“In terms of home price appreciation, the housing market appears to be catching its breath as we head into the final months of 2013,” said Anand Nallathambi, president and CEO of CoreLogic. “The deceleration in month-on-month trends was anticipated as strong gains in home prices over the spring and summer slow in line with normal seasonal patterns and the impact of higher mortgage interest rates.”