The rise of mortgage rates in March did not stop rising home prices.

Nationally, home prices were 20.6% higher than they were in March 2021, according to the S&P CoreLogic Case-Shiller Home Price Index. It is more than 20% increase in February. It is a 3-month average that ends in March.

According to Mortgage News Daily, the average 30-year fixed rate was 3.29% in January and 4.67% by March.

Comparatively to February 18, 7.7%, March’s Case-Shiller 10-city composite increased 19.5% each year. From 20.3% the month before, the year-over-2018 gain for 20-city composites was 21.2%. Both for national composites and those in 20 cities, the March reading represented the largest year-over-year change in prices since more than 35 decades of data.

The regional top gainer position was lost for the first three years by Phoenix. Tampa moved into the lead. With increases of 32.4%, 32.4%, and 32.0%, respectively, Tampa, Phoenix, and Miami, Tampa continued to experience the greatest annual gains. 17 of 20 cities saw higher prices in March 2022 than the previous year.

“Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” says Craig Lazzara, managing director at S&P DJI. For the 12-month ended March 31, all 20 cities had double-digit price gains. In 17 cities, however, prices grew faster than February’s.

While prices rose by double digits in the past year, cities that saw the largest price rises were Minneapolis (+112.4%), Washington (+112.9%), Chicago (+13%).

Since home sales are down for several months, it is expected that prices will start to fall. Real estate agents still report multiple offers from buyers for well-priced homes. However, the demand remains high. Sellers worry that they might miss the best days on the hot market because there is more supply.

“Mortgages have become more expensive since the Federal Reserve began to increase interest rates. It suggests that the macroeconomic climate may not be conducive for extraordinary home price increases in the near future. Lazzara added that while it’s possible to forecast price declines, it’s difficult to know when.