Home prices in the United States increased at the slowest pace in more than a year, as home affordability hampers price appreciation. The S&P/Case-Shiller Index, comprised of 20 cities, increased 10.8 percent from April 2013 opposed to the 12.4 percent in March.
Home prices adjusted for seasonal variations increased only .2 percent in April, marking the smallest gain since February 2012. Unadjusted home prices increased 1.1 percent.
The lack of affordability due to a lack of wage increases, inventory supply, combined with elevated home prices, are hurting the ability for sellers to ask even higher prices. According to Scott Anderson, chief economist at Bank of the West, “it’s a movement toward a more normal market.”
Freddie Mac reported that a 30-year fixed rate mortgage was 4.17 percent in the week ending on June 19, lower than the 4.53 percent seen at the beginning of the year. The mortgage lender and the Mortgage Bankers Association reduced their home sales forecasts for 2014 and estimating a decline in sales for the first time in four years.