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Home prices cooled at the fastest rate in index history

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A “For Sale” sign is displayed outside a single-family home in Los Angeles, California, on September 22, 2022.

Alison Dinner | Getty Images

US house prices fell at the fastest rate in the history of the S&P CoreLogic Case-Shiller Index in July, according to a new report released on Tuesday.

House prices in July were still higher than they were a year ago, but have fallen significantly from their June gains. Prices are up 15.8% nationwide in July 2021, well below the previous month’s 18.1% rise, according to the report.

The 10-city composite index rose 14.9% year-on-year, down from 17.4% in June. The 20-city composite he rose 16.1%, down from 18.7% the previous month. Year-over-year growth in July was lower than in June in each city covered by the index.

S&P DJI Managing Director Craig J. Lazzara noted the difference in annual earnings between June and July, writing that “July’s report reflects a strong slowdown.” “The -2.3% difference between these two monthly gains is the largest slowdown in the index’s history.”

Tampa, Miami and Dallas had the highest annual growth rates among the 20 cities in July, with increases of 31.8%, 31.7% and 24.7% respectively. Washington, D.C., Minneapolis and San Francisco recorded the smallest increases, but are still well ahead of last year’s levels.

Another report from the National Association of Realtors said home prices softened dramatically in June and July. Due to the strong seasonality of the housing market, prices usually fall at this time of year, but the rate of decline was three times his historical average rate of decline.

According to Realtor.com, the percentage of homes with price cuts reached about 20% in August, the same month as in 2017.

“For homeowners planning to go public, today’s market is very different from what it was three weeks ago,” said George Ratiu, senior economist and economic research manager at Realtor.com.

Home prices are falling as rapidly rising mortgage rates have pushed home prices down significantly. Average interest rates on popular 30-year fixed mortgages started the year at around 3% for him, but by June he briefly climbed above 6%. Having remained high at 5% throughout July, he is now closer to 7%, with his average monthly payment up about 70% from a year ago.

“Mortgage financing has become more expensive as the Federal Reserve continues to raise interest rates, a process that continues to this day. It could continue to slow down,” Lazzara said.

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