Mixed Signals: Home Prices Fluctuate as Housing Shortage Persists

Home prices in the US hit another all-time high in July, rising 2.3% from the same month last year, but weakened month to month, signaling a potential slowdown. The increase in mortgage rates, which are now over 7%, and an uptick in new listings are contributing factors. However, inventory remains low, dampening demand. The surge in home prices since the start of the pandemic, combined with higher mortgage rates, has made homeownership the least affordable it has been since 1984.