US house prices fell in June-July. higher mortgage interest rates It’s starting to weigh on home prices in many of the country’s biggest markets.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures the average change in home prices across the country, fell 0.3% in July from June, its first month-on-month decline since January 2019. The national index fell 0.2%. According to the metric, this was his first monthly decline in over a decade.
House prices are still rising year-on-year, despite the slowing pace of growth. The national index rose 15.8% for the year ending July, down from an annualized rate of 18.1% the previous month.
However, housing economists expect home price growth to slow significantly by the end of the year.
“The July report reflects a strong slowdown,” said Craig Lazzara, managing director of S&P Dow Jones Indices. Financing is getting more expensive.”
In the Case-Shiller 20 Cities Index, West Coast metropolitan areas were the hardest hit. San Francisco, where prices fell his 3.5%, and Seattle, whose prices fell 3.1%, suffered the biggest declines in a month.
The Case-Shiller index, which measures repeat sales data, reports a two-month lag and reflects a three-month moving average. As homes are typically contracted a month or two before closing, the July data reflects buying decisions made earlier in the year when interest rates were not as high as they are today.
The average interest rate on a 30-year fixed-rate mortgage was 6.29% in the week ending Sept. 22, up from 2.88% a year earlier, according to the housing finance agency.
Other recent data also show that soaring borrowing rates are cooling the once-hot housing market by making homeownership much more affordable. Existing home sales fell for the seventh straight month through August. The National Association of Realtors Home Price Index that takes into account family income, mortgage interest rates, and existing single-family home sales prices. It fell to its lowest level in decades in June. before rising in July.
According to the NAR, median existing home prices rose 7.7% to $389,500 in August from the same period last year.
The Case-Shiller 10 Cities Index rose 14.9% for the year ended July, compared to a 17.4% gain in June. The 20 Cities Index rose 16.1% after an annualized 18.7% rise in June. Price growth slowed in all 20 cities.
Economists polled by The Wall Street Journal expected the 20-city index to rise 17.3%.
Another measure of house price growth released by the Federal Housing Finance Agency on Tuesday showed house prices rose 13.9% year-on-year in July and fell 0.6% from June.
write destination Nicole Freedman [email protected]
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Appeared in the September 28, 2022 print edition as ‘Home Prices Suffer Monthly Decline’.