U.S. Single-Family Home Prices Slip 0.1% in April, FHFA Says

U.S. single-family home prices edged lower in April, though a shortage of homes for sale continued to provide support. According to Jin10, the Federal Housing Finance Agency (FHFA) said on Tuesday that prices fell 0.1% in April after rising 0.2% in March based on revised data. The monthly decline may have reflected softer demand as tensions in the Middle East pushed up oil prices, contributing to higher inflation and rising mortgage rates. Data from mortgage lender Freddie Mac showed that since a conflict broke out in late February, the average rate on a mainstream 30-year fixed-rate mortgage rose by about 50 basis points. The average rate was 6.49% last week. The report said a sharp drop in home prices was unlikely. Over the 12 months through April, home prices rose 2.0%, compared with a 1.8% increase through March. The United States continued to face a housing shortage, particularly for entry-level homes suitable for first-time buyers. The National Association of Home Builders (NAHB) estimated the housing shortfall at about 1.2 million units.