US house price growth eases in July

US house price growth eased in July, according to the latest S&P CoreLogic/Case-Shiller national home price index.

The national home price index, which covers all nine US census divisions, rose 15.8% on the year, down from 18.1% a month earlier. This marked the slowest pace of growth since April 2021.

Meanwhile, the 10-city index grew 14.9% on an annual basis in July, down from 17.4% growth in June. The 20-City composite posted a 16.1% year-over-year gain, down from 18.7% a month earlier.

Tampa, Miami, and Dallas reported the highest year-over-year gains among the 20 cities in July. Tampa led the way with a 31.8% jump, followed by Miami with a 31.7% increase, and Dallas with a 24.7% rise. All 20 cities reported lower price increases in the year ending July 2022 versus the year ending June 2022.

Craig J. Lazzara, managing director at S&P DJI, said: "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."

Nancy Vanden Houten, lead US economist at Oxford Economics, said: "We expect the decline in home price growth to accelerate as sharply higher mortgage rates have dealt a major blow to home buying affordability and home sales.

"We look for y/y home price growth to slip below 10% by Q4 with the risk clearly to the downside."