US home prices edge higher in November 2023

US home prices scaled to new heights in November 2023 as the lack of housing supply persisted.

The S&P CoreLogic Case-Shiller US National Home Price NSA Index, covering all nine US census divisions, rose 5.1% year over year in November 2023, up from a 4.7% annual gain in October 2023 and the highest yearly increase since the 5.7% year-over-year change recorded in December 2022.

Twelve of the 20 major metro markets reported month-over-month declines in prices.

The US National Index and the 10-City Composite index both posted month-over-month increases of 0.2%, after seasonal adjustments. The 20-City Composite index nudged 0.1% higher month over month.

Year over year, the 10-City Composite index grew 6.2%, up from a 5.7% annual gain in the previous month. The 20-City Composite index recorded 5.4% year-over-year growth, up from a 4.9% increase in the previous month.

Among the 20 cities in the index, Detroit again posted the biggest year-over-year home-price gain in November, at 8.2%, followed by San Diego with an 8% increase. Portland, Ore., was the lone city to post an annual decline in home prices, at 0.7%.

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Mortgage rates decline further in January

US mortgage rates continued to fall in January but remained above the levels seen in the year-ago period.

The interest rate on a 30-year fixed conforming mortgage averaged 6.82% as of Jan. 29, down from 6.94% posted as of Dec. 29, 2023, but up from 6.30% as of Jan. 30, 2023.

The average US 15-year fixed conforming mortgage rate was 6.24% as of Jan. 29, down from 6.37% as of Dec. 29, 2023, and up from 5.61% on Jan. 30, 2023.

Existing home sales drop, new home sales rise

Existing home sales slipped again in December 2023, after registering a sequential rise for the first time in five months in the preceding month, according to data from the National Association of Realtors.

Existing home sales fell 1.0% from November 2023 to a seasonally adjusted annual rate of 3.78 million units. Sales were down 6.2% year over year.

All US regions posted yearly declines in existing home sales. The West was the only region to post a month-over-month increase in existing home sales, up 7.8% to an annual rate of 690,000 units.

Total housing inventory registered at the end of December 2023 was 1 million units, down 11.5% from the previous month but up 4.2% from December 2022.

"The latest month's sales look to be the bottom before inevitably turning higher in the new year," Lawrence Yun, chief economist at the National Association of Realtors, said in a Jan. 19 news release. "Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months."

New home sales rose 8% sequentially in December 2023 to a seasonally adjusted annual rate of 664,000 units, according to data from the US Census Bureau and the Department of Housing and Urban Development. Annual gain in new home sales stood at 4.4%.

At 7.6%, the West posted the highest yearly gain in new home sales but was the only US region to register a monthly decline in new home sales.

The Northeast posted a 32% month-over-month increase in new home sales.

Top mortgage lender

Pontiac, Mich.-based UWM Holdings Corp. maintained its position as the top US residential mortgage lender, with $56.89 billion in mortgages through September 2023.