Low mortgage rates are helping raise home prices, but the future trajectory of the housing market remains uncertain as potential homebuyers are still struggling to afford high-cost homes. Home prices in affordable cities are increasing while more expensive cities see near stagnant prices.
Home prices grew more quickly in August, a sign that lower mortgage rates are providing a bit of a lift to the housing market.
Average national home prices grew 3.2% in the year ending in August, according to the S&P CoreLogic Case-Shiller National Home Price Index, up slightly from 3.1% the prior month.
After a weak start to the year the housing market gained some momentum in the summer but it is unclear if that will prove sustainable. The pace of existing home sales accelerated in July and August only to fall back in September, the National Association of Realtors reported last week.
