Spring brings relief to US housing market with first home price increase in months.
Nationwide home prices increased in February after falling for seven consecutive months, reflecting a return to normal for the spring buying season. The bump in home prices is due to low inventory as sellers are locked into their low mortgage rates, even as many home buyers are turned away from this market due to affordability constraints amid volatile mortgage rates. However, the housing market could face further weakness in the coming months as the Federal Reserve continues to fight inflation, which may keep interest rates elevated and act as a headwind for housing prices.