U.S. home prices continue to slow in September
WASHINGTON, Nov. 29 (Xinhua) -- Prices for U.S. single-family homes continued to slow in September amid rising mortgage rates, data released on Tuesday showed.
The S&P CoreLogic Case Shiller national home price index slid 0.8 percent in September from the previous month.
That continued a trend that began in July - the first time monthly home prices declined in roughly four years.
On a year-over-year basis, home prices increased 10.6 percent in September, declining from the year-over-year August rise of 12.9 percent.
All this occurs as the housing market gets slammed by a series of record-high interest rate increases by the U.S. Federal Reserve.
The Fed is raising rates in a bid to combat the worst inflation in four decades - but that has caused mortgage rates to soar and impacted the ability of potential buyers to purchase a home.
The 30-year fixed mortgage rate passed the 7 percent mark in October for the first time in two decades, according to data from Freddie Mac, which finances mortgages.
That's much higher above the 3.10 percent average at the same time last year.
"As the Fed continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable," according to a statement from Craig Lazzara, managing director at S&P Dow Jones indexes.
"Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken," Lazzara said