US home prices rose in February at the fastest pace in more than a year

In February, U.S. home prices surged at the fastest annual pace since November 2022, indicating a robust housing market despite high mortgage rates. The S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 6.4% from the previous year. Cities like San Diego experienced significant price increases, while Portland lagged behind.

However, the housing market faces challenges as mortgage rates remain high, affecting affordability and buyer participation. The 30-year fixed-rate mortgage reached 7.17%, the highest since November. Despite a slight increase in housing inventory, market conditions continue to be tough for potential homebuyers, with many priced out due to escalating costs.