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Single-family home prices during the first quarter increased on a 4.7% year-over-year basis, down from the previous quarter’s revised annual growth rate of 8.6%, according to the latest Home Price Index data from Fannie Mae (OTCQB: FNMA).

On a quarterly basis, first quarter home prices rose a seasonally adjusted 1%, above the 0% growth seen in the prior quarter. On a non-seasonally adjusted basis, home prices also increased by 1% in the first quarter.

Fannie Mae measured the price change for all U.S. single-family properties except condos.

“As expected, the annual rate of increase in home prices has slowed dramatically in response to the rapid and significant increase in interest rates,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Still, the fact that prices rose slightly in the first quarter is evidence of significant pent-up mortgage demand, despite ongoing affordability constraints. Even though mortgage rates remain elevated compared to the previous few years, the acute lack of housing supply remains supportive of home prices. Of course, the shortage of homes for sale is currently being exacerbated by the so-called ‘lock-in effect,’ which continues to disincentivize huge numbers of households with low mortgage rates from listing their homes.”