Q2 sees slowest growth rate in 4 years
Home prices might still be rising, but they’re at least doing so at a slower pace. According to the latest data from the Federal Housing Finance Agency, home price growth was at just 1.1 percent last quarter — its slowest rate in the last four years.
Verify your new rateHome price growth dampening
Fortunately for today’s home buyers, it appears home price growth is finally dampening. The FHFA’s latest Home Price Index shows that while home prices are up 6.5 percent over 2017, they rose just 1.1 percent in Q2 of this year.
That’s the slowest quarterly pace since 2014, according to William Doerner, the FHFA’s supervisory economist.
“Mortgage rates have increased by more than half a percentage point over the first six months of the year,” Doerner said. “Rates are still inexpensive from a historical standpoint, but their bump-up appears to have gently pressed the brakes on house price increases.”
Home prices aren’t that high, history shows
According to the FHFA, the West South Central Census division has experienced the slowest home price growth in the last year, at 5 percent. This division includes Arkansas, Louisiana, Oklahoma and Texas.
North Dakota experienced the smallest jump in home prices over the year, at 2.1 percent. Louisiana, West Virginia, Connecticut and Alaska also came in on the low end of price growth.
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Where price growth is the highest
It’s not all good news, though — at least for some parts of the country.
According to the House Price Index, the Mountain division has seen a 9.5 percent jump in home prices over the last year — the highest increase in the entire nation. This Census division includes Montana, Idaho, Wyoming, Colorado, Utah, Nevada, New Mexico and Arizona.
At the state level, Nevada has seen the most annual price growth, with a whopping 17 percent spike over 2017. Idaho, Washington D.C., Utah and Washington rounded out the top five in terms of appreciation.
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