Home prices rose slightly at the start of the year, but the latest reading was taken before the fallout from the Iran war began to push up mortgage rates.
The S&P Cotality Case-Shiller 20-City Home Price Index, which measures prices in the nation’s largest metropolitan areas, rose 1.18% in January from a year ago and 0.16% from December.
The low profits reflect the low supply and demand dynamics of the real estate market. First-time homebuyers continue to struggle with affordability, while many would-be sellers are postponing the move and clinging to their ultra-low mortgage rates.
Read more: How can people afford a home in today’s market? Ten tips for buyers backed by experts.
The data reflects home sales that closed between late 2025 and early 2026, when mortgage rates were hovering around multi-year lows in the low 6% area, a worrying sign for future real estate activity.
Since then, mortgage rates have risen rapidly over the past month and averaged around 6.55% on Monday, according to Mortgage News Daily.
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