By Imani Moise
Home prices continued to rise in October marking more than 12 consecutive months of growth.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures prices for typical single family homes across the country, rose 6.2% in the 12 months ended in October, up slightly from a 6.1% year-over-year increase reported in September.
As the rising cost of buying a home outpaces inflation, the pace of home sales have slowed. Sales of existing homes dropped 6.1% from March through September. Sales bounced back 8.4% in November.
"Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting, " said David Blitzer, managing director at S&P Dow Jones Indices.
Economists have said they aren't concerned about waning demand because prices are continuing to rise so briskly.
The 10-city index gained 6% year over year, up from 5.7% in September. The 20-city index gained 6.4%, up from 6.2% the previous month. Economists surveyed by The Wall Street Journal expected the 20-city index to rise 6.2% in September.
The average rate for a 30-year mortgage touched 3.94% last week, up from a year earlier when it averaged 4.3%, according to Freddie Mac.
Seattle reported the highest increase in home prices, jumping 12.7% year-over-year.
Month-over-month, the U.S. Index rose 0.2% in October before seasonal adjustment, with the 10-city and 20-city index rising by the same amount.
After seasonal adjustment, each of the indices rose by 0.7%.
Write to Imani Moise at email@example.com
(END) Dow Jones Newswires
December 26, 2017 09:59 ET (14:59 GMT)