U.S. Home Prices Rise in July but Lag Inflation

U.S. home prices rose again in July, although the reported pace varied by index: the S&P Cotality Case-Shiller national index increased about 1.9% year over year, while the FHFA index for single-family homes backed by Fannie Mae and Freddie Mac rose 2.6%. The FHFA measure was up 0.3% from June, with prices increasing in seven of nine regions; the Middle Atlantic led and the Mountain region posted the weakest results. Case-Shiller’s 20-city index also accelerated from June, with Chicago recording the strongest annual gain among the cities tracked, while prices fell in Seattle, Las Vegas and Denver. Despite the gains, Case-Shiller prices continued to lag inflation, and the broader market remains challenging for buyers facing high housing costs.