Quarterly increase in home prices at a near-record high

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He also said the low inventory levels continue to drive price growth like never before, leading to more affordability concerns for homebuyers. Meanwhile, Freddie Mac reported that 30-year mortgage rates averaged 5.7% by the end of Q2.

“At the end of 2021 and extending into 2022, we believe many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation,” Duncan said. “Given the sharp rise in mortgage rates since that time, and the resulting negative impact on affordability to potential homebuyers, we expect purchase demand to cool in the quarters ahead, and for home price appreciation to moderate as a result.”

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Fannie Mae’s index is a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the US – excluding condos.