After falling for months, home prices are rising again. Here's why.

of new and existing homes on the market. Many experts had predicted that home prices, which surged during the pandemic, would drop sharply this year. But the lack of homes for sale, exacerbated by owners locked into low mortgage rates who are sitting on the sidelines, is pushing up prices.

"Spring home-buying season is characterized by stronger return of buyers than sellers, which created another competitive market environment," Selma Hepp, CoreLogic chief economist, said in a statement."The very meager inventory of existing homes is putting buyers in a position of having to pay over the asking price and, as a result, driving early spring price gains well beyond what is traditionally seen during this period.

"The housing market correction has been more evident in the West, where house prices skyrocketed in recent years," PNC senior economist Abbey Omodunbi said in a report.Higher"borrowing costs have weighed heavily on demand and affordability and, coupled with ongoing supply constraints, could continue to be a hurdle for buyers," Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a note.

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