US home prices climbed in July, but showed a 'forceful deceleration'
By Anna Bahney, CNN BusinessUpdated: Tue, 27 Sep 2022 13:18:36 GMTUS home prices continued to climb in July. But the market showed signs of cooling as rising mortgage rates have pushed more prospectiv
By Anna Bahney, CNN BusinessUpdated: Tue, 27 Sep 2022 13:18:36 GMT
US home prices continued to climb in July. But the market showed signs of cooling as rising mortgage rates have pushed more prospective buyers to the sidelines.
Home prices rose 15.8% in July from the year before, a smaller jump than the 18.1% growth seen in June, according to the S&P CoreLogic Case-Shiller US National Home Price Index. The 2.3 percentage point difference between those two months is the largest deceleration in the history of the index.
On a monthly basis, prices fell 0.2% from June.
"Although US housing prices remain substantially above their year-ago levels, July's report reflects a forceful deceleration," said Craig J. Lazzara, managing director at S&P Dow Jones Indices.
All 20 cities reported lower price increases in July compared to the year prior.
Tampa notched the biggest gains, with home prices rising 31.8% in July from the year before. It was followed by Miami, which was up 31.7% and Dallas with a 24.7% increase.
"As the Federal Reserve continues to move interest rates upward, mortgage financing has become more expensive, a process that continues to this day," said Lazzara. "Given the prospects for a more challenging macroeconomic environment, home prices may well continue to decelerate."
This is a developing story and will be updated.
