U.S. Home Prices Sped Up in February on Hopes of Fed Cuts

By Ed Frankl

Annual home-price growth in the U.S. accelerated in February, aided by higher expectations of potential interest-rate cuts and lower mortgage rates.

The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, rose 6.4% from a year earlier in February, compared with a 6.0% annual increase the prior month, in data published Tuesday.

"Following last year's decline, U.S. home prices are at or near all-time highs," said Brian D. Luke, head of commodities, real & digital assets at S&P Dow Jones Indices.

For the third consecutive month, all cities reported increases in annual prices, with San Diego, Los Angeles, Washington, D.C., and New York all at record highs, he said.

The index, which measures repeat-sales data, reports on a two-month delay and reflects a three-month moving average. Homes usually go under contract a month or two before they close, so the February data is based on purchase decisions made earlier last year.

The Case-Shiller 10-city index rose 8.0% on year in February, following a 7.4% increase in January. The 20-city index rose 7.3%, compared with a 6.6% uptick in the prior month

Economists surveyed by The Wall Street Journal expected the 20-city index to rise just 6.7%.

"Enthusiasm for potential Fed cuts and lower mortgage rates appears to have supported buyer behavior," Luke added.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

April 30, 2024 09:25 ET (13:25 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.