Case-Shiller Shows Home Price Growth Hits All-Time High – What It Means For Homeowners
Home price growth continued its upward trend in August, posting a 19.8% annual gain, according to the S&P CoreLogic Case-Shiller US National Home Price NSA Index. This increase matches the record home price hike set in July.
“The US real estate market has shown continued strength in August 2021,” said Craig Lazzara, Managing Director of S&P DJI and global head of index investment strategy. “Each of our urban and composite indices is at its highest historical level, and year-over-year price growth continues to be very strong, although moderating somewhat from market levels. last month.”
The 10-City Composite, which measures home prices in the top 10 US cities, posted an annual increase of 18.6%, up from 19.2% in July. The 20-City Composite, measuring the top 20 cities, grew 19.7% per year, up from 20% the previous month.
Homeowners can take advantage of high home prices to refinance their homes, or even get cash refinancing, at today’s prices. historically low mortgage rates. Visit Credible to find your personalized rate in minutes without affecting your credit score.
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Home prices continue to rise but demand is weakening
Home prices are rising significantly in some key cities. For example, Phoenix has seen home prices appreciate 33.3% per year, while in San Diego and Tampa home prices have jumped 26.2% and 25.9%, respectively. In addition, eight of the top 20 cities saw higher annual house price increases in August than in July, the data showed.
On a monthly basis, national home prices rose 1.7% from July to August, while composites in 10 and 20 cities jumped 0.8% and 0.9%, respectively. But despite these increases, economists say growth is slowing.
“The US S&P CoreLogic Case-Shiller Index marked a turning point in August, up 19.8% from the previous month,” said Selma Hepp, deputy chief economist at CoreLogic. “And while demand remains strong and buyers continue to pay more for homes than the asking price, the slowing acceleration in home prices suggests that buyer fatigue is setting in, especially among priced homes. higher where the acceleration in price growth compared to the previous month was greater compared to low-level homes. “
If you are a homeowner, you can benefit from an increase in the value of your home through cash refinancing. Visit Credible to compare multiple lenders at once and choose the one that has the best rate for you.
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What the price increase means for homeowners
Many homeowners could benefit significantly from the higher value of homes in today’s real estate market. Depending on their goals, such as saving money or making a profit, they have several options. Here are just a few:
Withdraw money from your home
With soaring home values, homeowners can take advantage of their equity and withdraw money from their home through cash refinancing. This money can then be spent on home improvement projects or used to consolidate other high interest debt. Visit Credible to be prequalified in minutes.
Refinance to save money
According to Freddie Mac, homeowners who own less than 20% of their home’s equity must pay for additional private mortgage insurance (PMI), which can add a few hundred dollars to your monthly mortgage payments. However, with home prices soaring nearly 20% in the past year alone, even first-time buyers who bought a home with a low down payment as early as last year may have enough equity to withdraw. their mortgage insurance.
For homeowners with conventional home loans or loans guaranteed by Fannie Mae or Freddie Mac, removing PMI is as easy as contacting your lender or service agent. However, homeowners with FHA loans will need to refinance to remove their PMI payments.
If you are interested in refinancing your mortgage to lower your monthly fees, visit Credible to compare several lenders and prices. Homeowners who are refinancing now in the midst of record interest rates could potentially save hundreds on their monthly payments.
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Make a profit by selling
Homeowners could also make a substantial profit by selling their home for much more than they bought it, even though they bought it last year. In 2020, the median price for a typical home was $ 389,400, according to Statista. If the value of a median-priced home increased 20% from last year, that would represent an increase of over $ 75,000. However, while a homeowner has an advantage in the seller’s market, he then becomes a buyer in a housing market that is driven by high demand.
If you want to refinance your mortgage, contact Credible to speak to a mortgage expert and get all your questions answered.
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