The latest S&P Cotality Case-Shiller U.S. National Home Price NSA Index has reported a 1.3% annual increase for December, 2025. Their 10-City Composite posted 1.9% increase year-over-year and their 20-City Composite posted a 1.4% year-over-year increase. They say mortgage rates & inflation have reshaped the market and have eroded real home values for most owners:
““Two structural forces have reshaped the market over recent years: mortgage rates and inflation…The 30-year mortgage rate closed 2025 at 6.2%, well above the 4.8% 10-year average and a sharp contrast to the 3.9% average that prevailed from 2016 through 2020. Meanwhile, annual inflation for 2025 came in at 2.7% — modestly below the 3.1% 10-year average — but still outpaced home price appreciation by 1.4 percentage points, effectively eroding real home values for most owners.” Said Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices.
Click here to read the full report at S&P Dow Jones Indices.
