🏘 US Home Price Growth Slowed In July Amid High Mortgage Rates
⏺US home price growth slowed in July as high mortgage rates kept potential buyers away and supply increased. The national home price index rose 5% from a year earlier, down from June's 5.5% rise, according to S&P CoreLogic Case-Shiller data. After seasonal adjustment, prices in July rose 0.2% from the previous month, reaching a record for the 14th time in a row.
⏺The July index covers the three-month period beginning in May, when 30-year mortgage rates peaked at 7.22%. Borrowing costs have fallen since then, but housing affordability remains an issue. At the same time, the supply of homes on the market has increased, with active listings up 14% in July compared to last year.
⏺The US Federal Reserve cut interest rates for the first time this month, hinting at further cuts that could lower mortgage rates and revive the housing market. The likelihood of further rate cuts is high, and this could lead to an acceleration in home prices towards the end of the year or the beginning of next year, when purchasing power improves.
⏺In July, the price index for the 20 largest U.S. cities rose 5.9% from a year earlier, down from June's 6.5% rise. New York again saw the largest increase at 8.8%, followed by Las Vegas and Los Angeles with increases of 8.2% and 7.2%, respectively.
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⏺US home price growth slowed in July as high mortgage rates kept potential buyers away and supply increased. The national home price index rose 5% from a year earlier, down from June's 5.5% rise, according to S&P CoreLogic Case-Shiller data. After seasonal adjustment, prices in July rose 0.2% from the previous month, reaching a record for the 14th time in a row.
⏺The July index covers the three-month period beginning in May, when 30-year mortgage rates peaked at 7.22%. Borrowing costs have fallen since then, but housing affordability remains an issue. At the same time, the supply of homes on the market has increased, with active listings up 14% in July compared to last year.
⏺The US Federal Reserve cut interest rates for the first time this month, hinting at further cuts that could lower mortgage rates and revive the housing market. The likelihood of further rate cuts is high, and this could lead to an acceleration in home prices towards the end of the year or the beginning of next year, when purchasing power improves.
⏺In July, the price index for the 20 largest U.S. cities rose 5.9% from a year earlier, down from June's 6.5% rise. New York again saw the largest increase at 8.8%, followed by Las Vegas and Los Angeles with increases of 8.2% and 7.2%, respectively.
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