US Home Prices See Renewed Growth in July After Six Months of Declines, Though Rising Mortgage Rates Pose Ongoing Challenge

Home prices rose 0.9% in July, the sixth consecutive monthly increase after declines from June 2022 to January 2023.
On an annual basis, prices were up 1% nationally in July after having previously dropped 5% from their peak in June 2022.
The Midwest led regional price gains, while the West saw the biggest declines in cities like Las Vegas and Phoenix.
Mortgage rates above 7% are reducing affordability and led to an 8.7% drop in new home sales in August.
Lack of inventory is supporting prices but homebuilder sentiment turned negative in September amid slowing demand.