US Single-Family Home Prices Rise 0.3% in August Despite Elevated Mortgage Rates

U.S. single-family home prices rose 0.3% in August, the Federal Housing Finance Agency said Tuesday, as rising mortgage rates continued to weigh on housing demand. The gain followed a downwardly revised 0.2% increase in July, previously reported as 0.3%. Prices climbed 2.4% in the 12 months through August, slowing slightly from a 2.5% year-on-year advance in July. Higher home prices and mortgage rates have fueled what economists call an affordability crisis, a theme dominating campaign messaging ahead of next Tuesday's midterm elections. The average rate on a 30-year fixed-rate mortgage has surged more than 140 basis points since the U.S.-Israeli conflict with Iran began at the end of February, though it eased slightly to 7.32% last week, according to Freddie Mac. Monthly prices rose in five of nine census regions, led by a 2.1% gain in East South Central; New England fell 0.8% and the Middle Atlantic was unchanged. Year-over-year, prices rose in all nine regions, with East North Central up 4.4%.