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Home prices rose in July, but inflation makes gains look smaller

FHFA said its House Price Index increased 0.3% month over month in July, while annual appreciation was 2.6%, and the report noted inflation-adjusted gains look less impressive.

Reported · Written up by our desk · Residential

Home prices picked up pace in July, with both the FHFA House Price Index and the S&P CoreLogic Case-Shiller measures showing stronger annual appreciation than in prior readings, according to Mortgage News Daily. The gains were still relatively modest by historical standards.

FHFA reported the House Price Index rose 0.3% from June to July, lifting the annual increase to 2.6%. Case-Shiller showed the U.S. National Home Price Index up 1.9% year over year in July, compared with 1.6% in June, while the 10-City Composite increased 3.4% and the 20-City Composite rose 2.5%.

Mortgage News Daily said the national market is still technically appreciating, but results vary more across metro areas, with some markets holding steady or contracting.

The outlet also noted that nominal prices are moving higher nationally, but the picture looks considerably less impressive after accounting for inflation, with annual changes in recent inflation reports at 3.4% and higher in July, the month that aligns with the home price data.

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