The FHFA House Price Index for July showed a 0.4% month-over-month increase, a solid rise that shows home prices are still gaining ground. However, the year-over-year increase of 5.0% suggests that the upward momentum for prices has flattened out and is not going to return to the heady pace of the prior year any time soon.
The August data from the NAR on prices for existing units point to a similar trend with a 4.7% increase year-over-year. Declines in mortgage interest rates have helped bring cost-conscious buyers into the market who are more sensitive to price in spite of the improvement in affordability related to borrowing costs.
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