Home prices rose 2.1% in June, even as high mortgage rates keep the market 'under pressure'

In June, home prices increased by 2.1% in the S&P Cotality Case-Shiller 20-City Composite Index, with the national index growing 1.5% from a year earlier, according to data released on Tuesday. Despite home prices falling in real terms, the pace of decline slowed due to lower inflation and higher nominal home prices in June, said Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices.

Mortgage rates remained steady at around 6.5% in June, posing a challenge for many potential buyers and sellers. However, those who remained in the market experienced stability after rates surged significantly in the spring. The housing market continues to face pressure, with 30-year mortgage rates hovering near 6.5% in June, according to Kaufman.

This high cost of financing discourages prospective buyers, while existing homeowners are hesitant to part with the low mortgage rates they secured in previous years. Chicago saw the most significant growth, with home prices rising 6.9% in June compared to a year ago. New York and Cleveland followed, with increases of 4.8% and 4.1%, respectively. Conversely, Seattle experienced a 2% decline, and Las Vegas saw a 1.9% drop.