That’s according to the S&P Case-Shiller National Home Price Index, which showed a 0.2% decrease in single-family home prices in July after seasonal adjustment. While home prices were still up 15.8% over the year, it was a steep deceleration from the 18.1% seen in June. The chart below shows just how quickly the housing market is slamming on the brakes. The culprit for this summer’s slump in the housing market is the skyrocketing rate for a 30-year mortgage, which shot up past 6% since the Federal Reserve began its campaign to raise interest rates to fight inflation. That’s made it much harder to buy and sell a home. Fed chair Jerome Powell said the housing market, which had seen prices soar amid the pandemic, was in for a “difficult correction,” and if S&P’s data is any indication, it may have already begun. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.
