U.S. house prices rose at an accelerated pace in December, a sign that higher mortgage rates aren’t yet diminishing outsize demand for properties.
Data provider CoreLogic said its home price index was up 0.8% during the month, and 7.2% compared to a year ago. That’s the fifth straight month in which the yearly price increase was higher, including during months that saw mortgage rates jump nearly a full percentage point.
Low supply is boosting prices higher and higher, and CoreLogic expects that prices will rise 4.7% during 2017. That would take its national index – now 3.9% below the high last set in 2006 – to a fresh high sometime this year.
But CoreLogic’s forecasts have fallen short over the past few months as price gains defy gravity.
There are some familiar faces among the states with the strongest price appreciation: prices rose 10.8% in Washington and 10.3% in Oregon. But they were stronger in Idaho, at 9.0%, than in Colorado, which saw a gain of 8.9%.
Only one state, Wyoming, had a yearly decline in December. Prices were down 0.3% there.