US home prices hold below long-term average for 17th month

Higher mortgage rates and the lock-in effect are causing a supply-demand stalemate in the housing market, leading to minimal price growth of 0.2% month over month. Prices remain about 80% above pre-pandemic averages. The Northeast and Midwest show strong gains due to tight inventory, while Sun Belt and Western markets face declines. Entry-level homes in the Midwest show the strongest price momentum.