Black Knight: Despite Rising Interest Rates, Annual Home Price Growth Hits All-Time High of 19.6% in February, Driving Affordability to Lowest Level in 15 Years
In February, home prices surged by 1.84%, marking nearly four times the 25-year monthly average. This increase results in an impressive 19.6% annual growth, the highest rate recorded, with homes appreciating by over 34% since February 2020. Despite rising interest rates, affordability has plummeted to the lowest level in 15 years, requiring 29.1% of the median household income for monthly payments. Additionally, inventory remains critically low, compounding affordability struggles, even as 82 of the top 100 markets are less affordable than historical benchmarks.
- Home prices increased by 1.84% in February, reflecting ongoing demand.
- Annual home price growth hit a record 19.6%, the highest in history.
- 34% appreciation in home values since February 2020 demonstrates strong market recovery.
- Affordability is at its lowest level in 15 years, with 29.1% of income needed for mortgage payments.
- Rising interest rates have caused purchasing power to decline by 15%.
- 82 of the 100 largest U.S. markets are less affordable than historical averages, up from only 6 at the pandemic's start.
- According to the Black Knight HPI, home prices rose
- The average home has now increased in value by more than
- Each of the 100 largest U.S. markets experienced double-digit annual home price growth in February 2022, with three-quarters of those markets seeing continued acceleration of appreciation
- Home price growth is reaccelerating even as interest rates continue to climb, with rates rising nearly one-third of a percent in February and more than
- As a result, affordability is now at its lowest point on record outside of 2004-2007, with the monthly principal and interest (P&I) payment for the average-priced home purchase up
- It now takes
- 82 of the 100 largest U.S. markets are now less affordable than their long-term benchmarks, up from six at the start of the pandemic
- In recent years, a payment-to-income ratio above
JACKSONVILLE, Fla., April 4, 2022 /PRNewswire/ -- Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based upon the company's industry-leading mortgage, real estate and public records datasets. This month's report examines the continuation of record-breaking home price growth – even with interest rates rising sharply – and the mounting affordability pressures resulting from these competing dynamics. According to Black Knight Data & Analytics President Ben Graboske, February 2022 saw the largest annual home price gains on record
"Home prices grew by
"This combination of accelerating growth and sharply rising interest rates has resulted in the tightest affordability in 15 years. In fact, outside of the skewed 2004-2007 market, the
As the current inventory crisis is key to these unprecedented housing market conditions, this month's Mortgage Monitor also looks at what many had thought might serve as a release valve to the current shortage – namely potentially hundreds of thousands of homeowners coming out of forbearance listing their homes for sale as a resolution. The report finds that, of the 8.1 million homeowners who had been in forbearance at some point during the pandemic, there have been 2.3 million (
About the Mortgage Monitor
The Data & Analytics division of Black Knight manages the nation's leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the Black Knight HPI and Collateral Analytics' home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering
Black Knight's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit: https://www.blackknightinc.com/data-reports/
About Black Knight
Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serving their customers. For more information on Black Knight, please visit www.blackknightinc.com/.
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SOURCE Black Knight, Inc.
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