U.S. single-family home prices posted a modest increase in January, signaling a cooling yet stable housing market, according to fresh federal data.
The Federal Housing Finance Agency reported prices rose 0.1% month-over-month, following an upwardly revised 0.3% gain in December.
On an annual basis, prices climbed 1.6%, slowing from December’s 1.9% increase as prior gains dropped out of calculations.
Affordability had shown signs of improvement, but rising mortgage rates are now limiting access for many prospective buyers.
The average 30-year fixed mortgage rate surged to 6.38%, reaching a six-month high and increasing borrowing costs significantly.
Regional data showed strong growth in the East South Central area, where prices jumped 1.7%, alongside gains in several other regions.
However, declines were recorded in the West South Central, South Atlantic, and East North Central regions, reflecting uneven market conditions.
Year-over-year, price growth remained strongest in the East North Central and Middle Atlantic regions, while other areas saw mixed or flat performance.
