U.S. home prices rose in November at the swiftest annual rate in 11 months, indicating a recovery in the housing market may be taking hold.
Home prices grew 6.6% on a yearly basis after rising by 6.3% the month before, the Federal Housing Finance Agency (FHFA) said on Tuesday. That was the strongest annual growth since December 2022, when prices rose 6.8%.
Annual home price gains have been picking up speed, although home sales rates have remained subdued due to lack of inventory and high mortgage rates. Prices increased 0.3% on a month-to-month basis in November, unchanged from October's growth rate.
Mortgage rates began easing from two-decade highs in the fourth quarter last year after the Federal Reserve left its policy benchmark unchanged for three straight meetings. The average 30-year fixed-rate mortgage rose moderately to 6.69% for the week ended Jan. 25, according to Freddie Mac, and has remained below 7% since early December.
On a yearly basis, prices rose in all U.S. regions, FHFA said. Prices increased the most in the New England and "East North Central" regions, by 9.8% and 9.1%, respectively.
