US single-family home prices rise further in August, FHFA says

In August, the cost of single-family homes in the United States continued to climb, according to the Federal Housing Finance Agency (FHFA). Despite an increase in mortgage rates, which have been driven up by the ongoing conflict between the US and Israel and the resulting inflation, home prices still rose. The FHFA reported that prices grew by 0.3% in August, following a revised 0.2% increase in July. Over the past year, prices have climbed by 2.4%, up from a 2.5% increase in the previous month.

The surge in home prices has contributed to a housing affordability crisis, a concern that has been a key talking point in political campaigns leading up to the upcoming midterm elections. The average interest rate on a 30-year fixed-rate mortgage has jumped by more than 140 basis points since the conflict began in February. However, the rate has slightly eased, averaging 7.32% last week, according to data from mortgage finance firm Freddie Mac.

In August, home prices increased in five out of the nine census regions. The East South Central region saw the most significant gains, with prices rising by 2.1%. Additional notable increases were observed in the West North Central, West South Central, and East North Central regions. Conversely, prices decreased by 0.8% in the New England region, while remaining unchanged in the Middle Atlantic region.

On a year-over-year basis, home prices increased in all nine regions, with the East North Central region experiencing a 4.4% increase.