The gains come despite a sharp jump in mortgage interest rates during the month.
Prices nationally rose 0.7% month to month, seasonally adjusted. The index’s 10-city composite gained 1.1%, and the 20-city composite gained 1%.
Prices nationally were still down 0.5% compared with May 2022, but they are just 1% below their June 2022 peak.
The 10-city composite fell 1%, year over year, slightly less than the 1.1% decrease in the previous month. The 20-city composite dropped 1.7%, the same as the annual decline in April.
Of the 20-city composite, 10 cities saw lower prices in the year ended May 2023 versus the year ended April 2023 and 10 saw higher prices.
Cities in the West, where prices had inflated the most, were the worst performers in May. Seattle, down 11.3%, and San Francisco, down 11%, were the worst.
Prices are rising again because supply is still very low.
Current homeowners are reluctant to sell, given that most are paying mortgage rates that are less than half of today’s rates. Demand returned after the initial jump in mortgage rates, as buyers seem to be getting used to a new normal.
