US Home Prices Reach New Heights for Seventh Consecutive Month, Despite Increasing Mortgage Rates

Record hike led by Chicago with 5% annual growth, while West sees major price falls; lack of supply amid highest mortgage rates in over 20 years exacerbates affordability crisis.

US home prices surged to a new record high in August, marking the seventh consecutive month of increases despite high mortgage rates, according to the S&P CoreLogic Case-Shiller index.
The price increases were led by Chicago, which saw a 5% annual gain, with New York close behind with a 4.98% increase, while cities in the West witnessed significant price declines, including Las Vegas with a decline of 4.9%.
The availability of homes on the market decreased by more than 9% from the same time last year, with the number of available homes down by a remarkable 46% from before the COVID-19 pandemic began in early 2020.
The affordability crisis continues to deepen as mortgage rates surpass 20-year highs, with persistent high rates pushing more potential buyers to the sidelines due to increased pressure on affordability.
While the rise in mortgage rates has suppressed housing demand, the market's supply has been impacted even more, leading to a simultaneous hike in prices and scarcity of homes for potential buyers.