Home Prices Cooled Down at Fastest Pace in ‘History of the Index’
Home Prices Cooled Down at Fastest Pace in ‘History of the Index’

By Naveen Athrappully

U.S. home prices decelerated at a record pace in July, despite remaining elevated compared to a year back, according to S&P Dow Jones Indices.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, registered a 15.8 percent gain in July 2022 compared with July 2021, a Sept. 27 press release states. But compared to the 18.1 percent growth in June 2022, the July number is down by 2.3 percent. Craig J. Lazzara, managing director at S&P DJI, called the 2.3 percent monthly difference the “largest deceleration in the history of the index.”

The 10-City Composite registered a growth of 14.9 percent in July, down from the 17.4 percent gain in June. The 20-City Composite posted an increase of 16.1 percent in July, which is less than the 18.7 percent growth in the previous month.

Existing U.S. home sales had fallen by 5.9 percent in July, according to data from the National Association of Realtors (NAR), which called the situation a “housing recession.” In August, U.S. existing home sales slowed down for the seventh consecutive month.

According to the S&P report, the highest year-over-year gains in July among 20 cities were seen in the Florida cities of Tampa and Miami, and in Dallas, Texas.

While Tampa saw a 31.8 percent increase in prices, Miami registered a gain of 31.7 percent, and Dallas was third, with home prices rising by 24.7 percent. Compared to June 2022, price increases in all 20 cities for the year ended July 2022 were lower.

“As the Federal Reserve continues to move interest rates upward, mortgage financing has become more expensive, a process that continues to this day. Given the prospects for a more challenging macroeconomic environment, home prices may well continue to decelerate,” Lazzara said.

High Mortgage Rates

Elevated mortgage rates are one of the main reasons for cooling down in the housing market. According to data from Freddie Mac, the average rate for a 30-year fixed-rate mortgage was 6.29 percent for the week ended Sept. 22, which is more than double the 2.88 percent a year back.

An analysis by The Wall Street Journal showed that a person who bought a home with a 20 percent downpayment and 2.88 percent interest would only pay around $200,000 in total interest over the 30-year mortgage period. But with the rate at 6.29 percent, the total interest paid would equate to $490,000.

Mortgage rates started climbing swiftly after the Federal Reserve began to raise its benchmark interest rate this year.

In February, the federal funds rate was just at 0.8 percent, which has now risen to a range between 3.0 percent and 3.25 percent. On Feb. 2, the average rate for a 30-year fixed-rate mortgage was only 3.55 percent.

Members of the Fed’s policy-making arm, the Federal Open Market Committee (FOMC), are expecting interest rates to rise to 4.6 percent by the end of next year.

Affiliate News Feeds

  • Reuters
  • Washington Examiner
  • The Federalist
  • The Epoch Times
  • The Guardian
  • The Gateway Pundit
  • Judicial Watch

By Hans Mahncke News Analysis Late on Dec. 2, Elon Musk started the process of releasing thousands of internal Twitter emails. Musk, whose purchase of Twitter was completed on Oct. 28, had previously announced… [...]

By Naveen Athrappully France is banning short-haul domestic flights when there is a regular and frequent train option that takes less than two and a half hours, after a 2021 climate law, No… [...]

By Katabella Roberts House Minority Leader Kevin McCarthy (R-Calif.) vowed on Sunday that the fiscal 2023 National Defense Authorization Act (NDAA) will not move forward unless the military’s COVID-19 vaccine mandate ends. Speaking on Fox Business Network’s “Sunday… [...]

California lawmakers are once again poised to introduce legislation to tax Big Oil despite public backlash over a similar move earlier this year. [...]

The Supreme Court heard oral arguments Monday in a case about whether a custom webpage designer who disagrees with LGBT marriage can refuse to create a website for a same-sex… [...]

President Joe Biden is considering the idea of removing the COVID-19 vaccination mandate for U.S. service members, though he backs Defense Secretary Lloyd Austin’s continued support for the measure. [...]

Even corrupt corporate media are willing to acknowledge the risk of nuclear war is 'now a daily issue for the Biden administration.' [...]

A legal rep for the Loudoun County School Board engaged in witness tampering during an investigation into an alleged sexual assault. [...]

The attack on Lorie Smith is both authoritarian and unconstitutional. [...]

A recently discovered filing in a court case relating to Big Tech censorship revealed that the office of Arizona Secretary of State Katie Hobbs coordinated with Twitter to censor election… [...]

The Biden administration has claims it drained the heavily depleted U.S. Strategic Petroleum Reserve (SPR) in order to save the “global economy.” The White House’s International Energy Affairs adviser, Amos… [...]

To some, it’s an arcane discussion among constitutional scholars that reads like cement. To others, it’s a brazen grab for “runaway legislative power” by state lawmakers who say the U.S.… [...]

Labour-endorsed study finds initiative would save families thousands of pounds, cut benefits spending and raise tax revenuesFree universal preschool childcare and more funding for after-school clubs could increase government revenues… [...]

Charity boss talks of very difficult time for her charity Sistah Space since encounter with Susan HusseyA black British charity leader who was asked where she “really came from” by… [...]

PM caves in as up to 100 Tory MPs threaten to rebel, leading Labour to accuse him of putting party before countryRishi Sunak is to drop compulsory housebuilding targets to… [...]

Orange County, California – A Huntington Beach school principal committed suicide at Disneyland on Saturday. Christopher Christensen, 51, jumped off the Mickey & Friends parking structure on Saturday. Christensen said… [...]

Joe Biden’s Assistant Secretary of Health’s leading mission from day one has been pushing the normalization of transgenderism in our nation’s children.  This time, however, Levine wants America’s physicians to… [...]

Senator-elect Eric Schmitt, and current Missouri Attorney General, joined Sean Hannity on Monday night to discuss the federal government’s collusion with Democrat politicians to silence their conservative opposition. Currently, Missouri… [...]

Top Headlines of the Week Press Releases Judicial Watch: Secret Service Has Repeatedly Changed Story on Existence of Hunter Biden Gun Records Judicial Watch announced recently that the United States… [...]

From The European Conservative: In recent days, we have seen news reports proclaiming the Ukrainian victory along the western bank of the Dnipro River in the city of Kherson. These… [...]

Secret Service Repeatedly Changes Its Story on Hunter Biden Gun Records What is the Secret Service Hiding about Biden Raid on Trump’s Home? Judicial Watch Sues to Find Out! Judicial… [...]


USNN World News (USNN) USNN World News Corporation is a media company consisting of a series of sites specializing in the collection, publication and distribution of public opinion information, local,...