US Home Prices Continue to Decline for Seventh Straight Month in January

Home prices in the US rose only 3.8% YoY in January, down from 5.6% in December, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. The decline was smaller than in previous months due to a brief drop in mortgage rates and a resulting jump in sales. However, prices have been falling for seven straight months, with the 10-city and 20-city composites rising only 2.5% YoY. Homebuyers may see more flexible sellers this spring, but there are still too few homes available for sale, and mortgage lending may tighten due to pressure on the banking system.