WASHINGTON, Oct 27 (Reuters) – US single-family house prices increased further in August, despite rising mortgage rates weighing on demand for housing.
House prices rose 0.3% after a downwardly revised 0.2% gain in July, the Federal Housing Finance Agency said on Tuesday. Prices were previously reported to have climbed 0.3% in July.
They increased 2.4% in the 12 months through August, after advancing 2.5% year-on-year in July.
Higher home prices and mortgage rates, which have surged amid the US-Israeli war with Iran and its inflationary fallout, have fueled what economists describe as an affordability crisis, a theme that has dominated campaign messaging ahead of next Tuesday’s midterm elections.
The average rate on a 30-year fixed-rate mortgage surged by more than 140 basis points since the conflict started at the end of February. The rate has eased slightly, averaging 7.32% last week, data from mortgage finance firm Freddie Mac showed.
Monthly house prices increased in five of the nine census regions in August, rising 2.1% in the East South Central region. There were solid gains in West North Central, West South
Central and East North Central regions. But prices fell 0.8% in New England and were unchanged in the Middle Atlantic region.
On a year-over-year basis, prices increased in all nine regions, with the East North Central region posting a 4.4% jump.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)
