U.S. Home Prices Increase 2.1% in June Despite Elevated Mortgage Rates Keeping Market Under Pressure

U.S. home prices continued their upward trajectory in June as mortgage rates stabilized during the traditional peak buying and selling season.

The S&P Case-Shiller 20-City Composite Home Price Index, which tracks residential values across 20 of the nation’s largest metropolitan areas, rose 2.1% year-over-year in June, according to data released Tuesday.

The broader national index, encompassing a wider range of metro regions, increased by 1.5%.

“While home prices continue to decline in real terms, lower inflation and firmer nominal home price growth in June helped slow that pace of erosion,” said Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices, in a statement.

Mortgage rates remained relatively stable at approximately 6.5% throughout June—a threshold sufficiently high to discourage many prospective buyers and sellers from entering the market. Those who remained active, however, benefited from a period of rate stability following the rapid increases witnessed in the spring.

“The housing market remains under pressure, with 30-year mortgage rates holding near 6.5% in June,” Kaufman noted. “As financing costs remain elevated for prospective buyers, current homeowners continue to be reluctant to part with the low mortgage rates they secured in previous years.”

Among major metropolitan areas, Chicago experienced the most robust price appreciation, with home values climbing 6.9% year-over-year in June. New York and Cleveland followed with gains of 4.8% and 4.1%, respectively.

In contrast, home prices declined in certain markets, falling 2% in Seattle and 1.9% in Las Vegas.

Source link