US Monthly House Prices Increase Slightly in July, According to Reuters

U.S. Home Prices Show Modest Gains Amid Improving Supply

U.S. single-family home prices experienced a slight increase in July, but the overall trend appears to be slowing as housing supply improves. This, along with decreasing mortgage rates, may make purchasing a home more affordable.

According to the Federal Housing Finance Agency, house prices edged up by 0.1% on a month-to-month basis after remaining stable in June. Over the year ending in July, prices rose by 4.5%, marking the smallest annual increase since June 2023, following an upwardly adjusted rise of 5.3% in June. Earlier reports indicated that the annual increase was 5.1%.

"For the third consecutive month, U.S. house prices showed minimal change," noted Anju Vajja, deputy director for FHFA’s Division of Research and Statistics. "Gradually declining mortgage rates and relatively steady house prices may enhance housing affordability."

Recent statistics reveal that mortgage rates have fallen to the lowest levels in over a year and a half, with further declines possible following the Federal Reserve’s recent decision to reduce its benchmark overnight interest rate by 50 basis points to a range of 4.75%-5.00%.

Anticipated lower borrowing costs may stimulate housing demand, which could exceed supply and prevent significant declines in home prices. While the national inventory of previously owned homes has been on the rise, many areas still experience a shortage.

Monthly house price increases were recorded in the Pacific, Mountain, East North Central, and New England regions. Conversely, some areas—including the West South Central, East South Central, and South Atlantic regions—saw declines in prices.

All nine census regions experienced annual price growth, with substantial increases observed in the Middle Atlantic, East North Central, New England, and East South regions. The West South Central region lagged behind with an increase of only 1.6%.