US Home Prices Hit Record High Despite Rising Inventory and Mortgage Rates

Conflicting market dynamics create uncertainty in housing affordability as supply increases but demand remains strong.

Home prices reached a new record in May, rising 5.9% year-over-year according to the S&P CoreLogic Case-Shiller index.
Higher mortgage rates and increased housing supply have not significantly lowered prices, with some regions seeing substantial gains.
The 'lock-in' effect, where homeowners are reluctant to sell due to previously low mortgage rates, continues to limit new listings.
Experts predict mixed outcomes for the housing market, with some expecting prices to stabilize while others foresee continued growth.
The Federal Reserve's future interest rate decisions may influence mortgage rates and, consequently, home prices.