WASHINGTON, Sept 29 (Reuters) – US single-family house prices increased in July, adding to the strain from rising mortgage rates that are pushing homeownership further out of reach for many young adults.
House prices rose 0.3% after being unchanged, as previously reported in June, the Federal Housing Finance Agency said on Tuesday. Prices advanced 2.6% in the 12 months through July, after increasing 2.3% in the 12-month period through June. The increase in home prices occurred despite weak demand, which has increased housing inventory.
The US-Israeli war with Iran is raising energy prices, driving up longer-term Treasury yields and mortgage rates. The average rate on a 30-year fixed-rate mortgage has soared more than 100 basis points since the war started in late February. It averaged 7.03% last week, the highest level since January 2025, data from mortgage finance firm Freddie Mac showed.
Higher home prices and mortgage rates are at the center of the affordability debate heading into the November 3 midterm elections, which will determine control of Congress.
Monthly house prices rose in seven of the nine census regions in July, jumping 1.5% in the Middle Atlantic. They climbed 0.6% in the Pacific region and gained 0.4% in the West North Central and East North Central regions.
But prices fell 0.8% in the Mountain region and eased 0.5% in the East South Central region. On a year-over-year basis, prices increased in all nine regions. They shot up 6.3% in the Middle Atlantic region and advanced 4.5% in the East North Central region. The Mountain region reported the smallest gain, with prices rising 0.6% on a year-over-year basis.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
