The Case-Shiller Home Price Index – often seen as the gold standard for measuring home values – showed a slight monthly decline in July, both before and after seasonal adjustments. Nationally, prices are still up 1.7% from a year ago, a bit slower than June’s 1.9% annual gain.
The FHFA Index also showed a small monthly drop and a 2.3% annual increase. Unlike Case-Shiller, FHFA only includes homes bought with conventional mortgages – excluding cash and jumbo loan purchases.
What’s the bottom line?
While home prices remain higher than a year ago, growth is clearly slowing. But if mortgage rates continue to fall, stronger demand could put upward pressure on prices once again.
