The gains in U.S. house prices slowed in July compared with the previous month, per the latest figures from the S&P CoreLogic Case-Shiller Indices.
The national index, covering all nine U.S. census divisions, reported a 0.4-percent seasonally-adjusted gain in July compared with June while the 10-city composite Index posted a 0.1-percent decrease month-over-month increase and the 20-city composite was unchanged. Looking at the 12-month period, the national index increased 5.1 percent in July, up from 5 percent in June, while the 10-city measure rose 4.2 percent, down from 4.3 percent in June, and the year-over-year gain in the 20-city composite was 5 percent, down from 5.1 percent in June.
“Both the housing sector and the economy continue to expand with home prices continuing to rise at about a 5 percent annual rate,” says David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “The statement issued last week by the Fed after its policy meeting confirms the central bank’s view that the economy will see further gains. Most analysts now expect the Fed to raise interest rates in December. After such Fed action, mortgage rates would still be at historically low levels and would not be a major negative for house prices.”
