According to CoreLogic, home prices nationwide increased year over year by 18% in September 2021 compared with September 2020. On a month-over-month basis, home prices increased by 1.1% in September 2021 compared with August 2021. In Florida, we saw even more annualized growth, with year over year prices going up by 20%.
While I was happy to see Zillow officially announce that is getting out of the home buying business, it is unfortunate that it will result in a reduction in their employees. The reason I felt good about another iBuyer dropping out of the market is that it should continue to contribute to a rebalancing of supply and demand.
We saw mortgage interest rates continue to trend higher in the last 30 days. The recent change will cost new borrowers another $7.50 per month for every $100,000 borrowed. Average U.S. rates for 30-year fixed rate mortgages were at 3.01% as of this week. Last month at this time, they were sitting at 2.87%. Of course, both are historically low.
One of the measures of the health of the real estate market is to track how mortgage loan repayments are performing. Understanding the trends regarding homeowner likelihood of default is important to understanding how the future supply of homes for sale will adjust. Of course, data is a bit skewed on the foreclosure front now due to the Pandemic induced moratorium on foreclosures.
After creeping up a bit, we saw mortgage interest rates drop again in the last 30 days. The recent change will save new borrowers another $12 per month for every $100,000 borrowed. Average U.S. rates for 30-year fixed rate mortgages were at 2.80% as of this week. Last month at this time, they were sitting at 3.02%. Of course, both are historically low.