U.S home prices rose in May, but only by 0.3%, bringing the pace of growth down to the slowest rate since January 2023, according to real estate data firm Redfin. Prices rose 7.2% from the year before, but even annual growth is showing signs of plateauing.
Redfin experts say price increases are slowing thanks to an incremental increase in new listings. They expect mortgage interest rates to start declining later this year, providing potential homebuyers with some affordability relief.
It Was Slightly Easier To Get A Mortgage Loan In May
According to the Mortgage Bankers Association, with available mortgage credit having inched up for five straight months now the MBA’s Mortgage Credit Availability Index rose 0.1% in May to a reading of 94.1.
An increase in the index indicates loosening credit standards and it was benchmarked to 100 in March 2012. May’s increase was led by a 0.3% jump in conventional loan credit. MBA experts say that lenders are expanding availability slightly to reach more potential home buyers in a tight market.