U.S. home prices increased 13% annually in March, according to the national Case-Shiller index, making for the biggest gain in more than 15 years.
Surging prices were the result of demand, which came as the COVID-19 pandemic sped up the flight from big cities to regional hubs and the suburbs, overwhelming already tight supplies. Record low mortgage rates allowed homebuyers to chase prices higher.
“Materially changing demand will probably take [mortgage] rates closer to 5%,” said Mark Fleming, chief economist at First American Financial Corp.
Mortgage rates typically track the 10-year yield, which during the…