U
S home prices rose by 0.5% in September, marking the fastest growth rate since April, according to a Redfin report. This increase follows three consecutive months of rising growth pace and improved mortgage affordability, with rates dropping to 6.08% from August's rate above 6.5%. On a year-over-year basis, home prices rose 6%, the lowest annual increase since December 2023.

    The surge in prices is attributed to high demand and a lack of housing supply, with 20% fewer homes on the market than five years ago when mortgage rates were historically low. Redfin's senior economist predicts that home prices will continue to climb until more inventory comes onto the market in the spring, as mortgage rates are unlikely to drop below 6% this year.

    While most populous metro areas saw declines in home pricing in September, some areas experienced increases. New York's Nassau County recorded a 1.7% rise, the largest increase in September, followed by Philadelphia with a 1.6% price hike and Virginia Beach with a 1.4% increase.