Home prices rose slightly to start the year, but the latest reading was taken before fallout from the Iran War began pushing mortgage rates higher.
The S&P Cotality Case-Shiller 20-City Home Price Index, which measures prices in the nation’s largest metro areas, rose 1.18% in January from a year earlier, and 0.16% from December.
The meager gains reflect the housing market’s low supply and low demand dynamics. First-time homebuyers continue to struggle with affordability, while many would-be sellers put off moving and hang on to their ultra-low mortgage rates.
Read more: How are people affording houses in today’s market? 10 expert-backed tips for buyers.
The data reflects home sales that closed between late 2025 and early 2026, when mortgage rates were hovering near multiyear lows in the low 6% area, a worrying sign for future housing activity.
Since then, mortgage rates have climbed rapidly over the last month and averaged around 6.55% on Monday, according to Mortgage News Daily.
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