The lower rates no longer benefit home buyers, only homeowners.
Note. February 2021 data is the latest available from Case-Shiller as I write this on April 27, 2021. The data is a 3-month moving average so what they call February is really the December-February average.
- Click on images to see full-size, interactive versions
- See all 17 Case-Shiller graphs.
Real House Price Appreciation
Phoenix and San Diego real, inflation-adjusted house prices increased 15% over the previous 12 months.
For the U.S. as a whole, real house prices were up 10% from February 2020 to February 2021.
House Price Momentum
For the U.S. as a whole, nominal house prices increased 8% faster from February 2020 to February 2021 than they did previous 12 months (February 2019 to February 2020).
Nominal house prices increased in ALL cities covered by Case-Siller over the last 12 months compared to the previous 12 months.
Home Prices
The Case-Shiller Home Price Index for the USA is now 239 which means nationally single-family houses have appreciated 12% from a year earlier, and 139% since January 2000.
Fastest Price Appreciation
- Phoenix and San Diego had 17% house price appreciation (nominal) from February 2020 to February 2021!
“Slowest” Price Appreciation
- Chicago and Las Vegas had 9% house price appreciation (nominal).
Borrow 9% More with the Same P&I Payment
Mortgage rates fell from 3.47% in February 2020 to 2.81% in February 2021 (30-year fixed-rate mortgages).
With the same monthly principal and interest payment, you could borrow 9% more money. USA house prices, however, increased 12% and are continuing to increase fast.
The entire benefit of the Fed’s lower interest rates has already been converted into higher house prices and they no longer benefit home buyers, only homeowners.
Note. You can find interactive versions of these charts for all 20 Case-Shiller metros here.