U.S. home prices rose in April from a year earlier, lifted by bidding wars in many cities where would-be buyers fought over a sparse supply of homes.
The S&P CoreLogic Case-Shiller 20-city home price index moved up 6.6 percent from a year earlier, led by outsize gains in Seattle, Las Vegas and San Francisco. All three cities showed double-digit increases.
Prices rose even as home sales fell and mortgage rates climbed. Sales of existing homes dropped in April and May and are now running 3 percent below their year-ago level. Fewer homes are available — the supply has fallen 6.1 percent in the past year — and they are selling quickly.The average house for sale remained on the market for just 26 days in April, down from 39 a year ago.
Mortgage rates reached a seven-year high of 4.77 percent in late May before declining this month. Last week, the 30-year fixed mortgage rate averaged 4.57 percent, according to Freddie Mac. That is still much higher than a year ago, when it was 3.9 percent.
The economy is growing and the unemployment rate is at an 18-year low, which typically would point to stronger home sales. Americans are increasingly turning to newly-built homes, where sales jumped 6.7 percent in May.
