Despite rising mortgage rates, the S&P CoreLogic Case-Shiller 20-city home price index rose 0.5 percent in March from the previous month.

Home prices were strongest in the Southeast, while prices in the West continued to drag. Although buyer demand outpaced supply in March, soaring mortgage rates may have dampened home sales. According to Mortgage News Daily, interest rates on 30-year mortgages exceeded 7% in May.

Year-over-year appreciation fell 1.1 percent, slipping after home prices rose 0.4 percent in February. the 20-city index peaked in June 2022.

The broader measure of home prices, the national index, rose 0.4 percent in March from February and is up 0.7 percent over the past year.

All figures are seasonally adjusted.

Cities in the Southeast led the way in home price growth. Miami and Tampa, Florida, and Charlotte, North Carolina, were the three cities with the highest year-over-year gains among the 20 cities in March.

West Coast cities, from Seattle to San Francisco, continued to see weak home price growth. Home prices in Seattle fell 12.4 percent from March of last year.

A separate report from the Federal Housing Finance Agency also showed that home prices were on the rise in March, up 0.6 percent from February.

This compares with a 3.6 percent increase in the Federal Housing Finance Agency's index over the past year.

There aren't enough homes on the market listed for sale because home sellers see no incentive to give up their ultra-low mortgage rates for a 7% interest rate loan on a new home.

But rising interest rates could soon dampen demand as well, as buyers may find that rising costs keep them from buying a home.

The housing sector is working to boost demand and supply: While homebuilders are boosting new home sales by increasing supply through new construction, mortgage lenders are also offering incentives, such as buyers having to make only a 1% down payment. The National Association of Realtors is proposing changes to existing tax policies to boost supply.

What S&P says: "Two months of price gains do not signal a clear recovery, but March's results suggest that the decline in home prices that began in June 2022 may be over," said Craig J. Lazzara, managing director of S&P DJI.

"That said, the challenges posed by current mortgage rates and the continued likelihood of economic weakness are likely to remain a headwind for home prices, at least for the next few months," he added.

Home prices rose in March as sellers insisted on not listing their homes, limiting supply.

Despite rising mortgage rates, the S&P CoreLogic Case-Shiller 20-city home price index rose 0.5 percent in March from the previous month.

Home prices were strongest in the Southeast, while prices in the West continued to drag. Although buyer demand outpaced supply in March, soaring mortgage rates may have dampened home sales. According to Mortgage News Daily, interest rates on 30-year mortgages exceeded 7% in May.

Year-over-year appreciation fell 1.1 percent, slipping after home prices rose 0.4 percent in February. the 20-city index peaked in June 2022.

The broader measure of home prices, the national index, rose 0.4 percent in March from February and is up 0.7 percent over the past year.

All figures are seasonally adjusted.

Cities in the Southeast led the way in home price growth. Miami and Tampa, Florida, and Charlotte, North Carolina, were the three cities with the highest year-over-year gains among the 20 cities in March.

West Coast cities, from Seattle to San Francisco, continued to see weak home price growth. Home prices in Seattle fell 12.4 percent from March of last year.

A separate report from the Federal Housing Finance Agency also showed that home prices were on the rise in March, up 0.6 percent from February.

This compares with a 3.6 percent increase in the Federal Housing Finance Agency's index over the past year.

There aren't enough homes on the market listed for sale because home sellers see no incentive to give up their ultra-low mortgage rates for a 7% interest rate loan on a new home.

But rising interest rates could soon dampen demand as well, as buyers may find that rising costs keep them from buying a home.

The housing sector is working to boost demand and supply: While homebuilders are boosting new home sales by increasing supply through new construction, mortgage lenders are also offering incentives, such as buyers having to make only a 1% down payment. The National Association of Realtors is proposing changes to existing tax policies to boost supply.

What S&P says: "Two months of price gains do not signal a clear recovery, but March's results suggest that the decline in home prices that began in June 2022 may be over," said Craig J. Lazzara, managing director of S&P DJI.

"That said, the challenges posed by current mortgage rates and the continued likelihood of economic weakness are likely to remain a headwind for home prices, at least for the next few months," he added.