US Home Prices Steady Despite Rising Mortgage Rates

US home prices continued to rise modestly in February despite high mortgage rates, driven largely by a persistent shortage of available homes. The S&P CoreLogic Case-Shiller Index showed a 0.3% monthly increase and a 3.9% annual gain, with similar trends reflected in both urban and national indices. New York saw the highest yearly growth among major cities, while some, like Tampa, experienced declines. The average 30-year fixed mortgage rate hovered around 6.8%, dampening affordability but not sufficiently reducing demand to halt price increases. Experts note that the housing market's resilience stems from tight inventory, which maintains upward pressure on prices even as existing home sales decline and buyers face financial challenges. This environment presents ongoing difficulties for aspiring homeowners and poses a delicate challenge for policymakers balancing market stability with affordability.