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M R EP O RT | 51 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION Increased Cost of Homeownership Dampening Buyer Demand According to the CoreLogic Home Price Index, while a month-over-month price decrease indicates reduced homebuyer enthusiasm, decelerating price growth and price declines may benefit younger potential homebuyers. C oreLogic has released the CoreLogic Home Price Index (HPI) and HPI Forecast for Au- gust 2022, showing home prices nationwide—including distressed sales—increased year over year by 13.5%; the lowest year-over- year appreciation recorded since April 2021, partially reflecting cooling buyer demand due to higher mortgage rates and housing trends prompted by the COVID-19 slowdown. Although U.S. home prices continued their 127-month run of consecutive annual gains in August, they slowed for the fourth straight month to 13.5%. The 0.7% month-over-month price decrease also indicates reduced homebuyer enthusiasm, with nearly three-quarters of states posting declines from July. "The increased cost of home- ownership has dampened buyer demand and caused prices to decelerate at a faster pace than ini- tially expected," said Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic. "Housing markets on the West Coast and in the Mountain West, as well as second-home markets, recorded particularly strong price growth in the summer of 2021 but were the first to see month-over- month price declines during the same period this year." Highlights: • U.S. home prices (including distressed sales) increased 13.5% year over year in August 2022 compared to August 2021. • On a month-over-month basis, home prices declined by 0.7% compared to July 2022. • In August, annual appreciation of detached properties (13.7%) was 0.9 percentage points higher than that of attached properties (12.8%). • Annual U.S. home price gains are forecast to slow to 3.2% by August 2023. • Miami posted the highest year- over-year home price increase of the country's 20 largest metro areas in August, at 27.1%, while Tampa, Florida, dropped to the second spot at 26.9%. • Hurricane Ian's impact on Tampa's housing market and other parts of Florida could cause price growth there to relax even more than the pro- jected U.S. slowdown. • Florida and Tennessee posted the highest home price gains, 26.4% and 20%, respectively. • North Carolina ranked third with a nearly 20% year-over- year increase. Washington, D.C., ranked last for apprecia- tion at 2.4%. "While decelerating price growth and price declines benefit younger potential homebuyers, mortgage rates that are approach- ing 7% may cut many hope- fuls out of the picture," Hepp concluded. Anywhere. Anytime. MReport Digital Experts you trust. People you know. News you want. MReport is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MReport Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Subscribe to MReport and MReport Digital now! Call 800.856.8060 or connect with us online at themreport.com to take advantage of our special introductory offer! digital.themreport.com powered by THEFIVESTARINSTITUTE Bringing Today's Lending Headlines into Focus, MReport Digital Puts Mortgage Banking News at Your Fingertips