Monthly US home prices rose in July By Reuters

WASHINGTON (Reuters) – U.S. single-family home prices rose in July, but the overall trend is slowing amid improving supply, which along with lower mortgage rates could make buying a home more affordable.

Home prices rose 0.1 percent month-over-month after being flat in June, the Federal Housing Finance Agency said Tuesday. They rose 4.5% in the 12 months to July, the slowest rise since June 2023, after an upwardly revised 5.3% advance in June. Annual house price growth was previously reported at 5.1%.

“For the third month in a row, U.S. home prices showed little movement,” said Anju Vajja, deputy director of FHFA’s Division of Research and Statistics. “Gradually falling mortgage rates and relatively flat home prices can improve housing affordability.”

Mortgage rates fell to a more than 1-1/2-year low and could fall further after the Federal Reserve last week cut its benchmark overnight interest rate by 50 basis points to a range of 4.75% -5.00%.

With lower borrowing costs expected to boost demand, which could outstrip supply, an outright fall in house prices is unlikely. Previously owned homes remain tight in many regions, even as the national inventory has grown.

There were solid monthly home price gains in the Pacific, Mountain, East North Central and New England regions. Home prices fell monthly in the West South Central, East South Central and South Atlantic regions.

All nine census tracts saw annual home price gains, with large increases in the Mid-Atlantic, East-North Central, New England and Southeast areas. Prices in the West South Central region lagged behind with a 1.6% increase.