The Fed's high-intensity interest rate hike is leading to a raise in mortgage rates. Mortgage rates on a 30-year loan were only 3.3% at the start of the year but it is close to 7% now. Under this market condition, the demand for housing purchases and housing prices are reducing. According to Federal Housing Finance Agency (FHFA), US House Price Index in July and August 2022 are 394.6 and 392.0 falling for the second straight month from June with 397.1.
Even under the same external condition, the price changes in housing markets are different. The map below shows the housing price change from July to September 2022 at the MSA level.
According to Zillow Housing value, the decline in housing prices is observed in 35 MSA out of the 126 MSA that Market Stadium covers. Especially, the Major housing market on the west coast has been experiencing the biggest drop in housing prices from July to September. For example, housing prices in San Francisco, San Jose, and Austin MSA fell by 3.15%, 3.03%, and 2.90%. On the other hand, there are MSAs showing increasing housing prices through September such as New York, Bridgeport, Santa Fe, and Miami MSAs. However, even in these areas, the increasing trend in housing prices is clearly diminishing. For instance, the average house price in Santa Fe has increased by 1.64% per month from January to July 2022 but is diminished to only 0.16% per month from July to September.