The United States opened the year with a nearly 20% surge in home prices, marking the fourth-highest year-on-year growth in 35 years.
Source: S&P Global
XHB is up 3.84%, while ITB is up 3.81%.
The National Home Price NSA Index posted a 19.2% annual gain in January, higher than the 18.9% increase recorded in December 2021. This is the fourth-largest since data collection started 35 years ago.
The 10-City Composite recorded an annual increase of 17.5% to mark slight growth from 17.1% in December 2021, while the 20-City Composite posted annual growth of 19.1%, up from 18.6% the month earlier.
The biggest annual increases were recorded in Phoenix, up 32.6%, in Tampa, up 30.8%, and Miami, up 28.1%. Annual increases were posted in 16 out of the 20 cities from the year-to-date in December.
S&P DJI Managing Director Craig Lazzara believes home prices are expected to be hit by increasing mortgage rates in the short term.