Home prices continue to rise. Many homeowners’ mortgage rate is less than current rates. Renters looking to purchase a home.

Home prices continue to rise due in part to a shortage of homes for sale on the market. CoreLogic reports that home prices, including distressed sales, rose 7.1% from May 2017 to May 2018, up 1.1% month over month from April to May. Looking ahead, CoreLogic forecasts that home prices will rise 5.1% from May 2018 to May 2019. From May 2018 to June 2018, prices are expected to increase by 0.3%.
CoreLogic also reported that during the first quarter of 2018, about 50% of all existing homeowners had a mortgage rate of 3.75% or less. May’s mortgage rates averaged a seven-year high of 4.6%, with an increasing number of homeowners keeping the low-rate loans they currently have, rather than sell and buy another home that would carry a higher rate. In closing, CoreLogic states that despite high home prices, renters want to get out of their rental property and purchase a home.