US property prices fell at the fastest rate in August

In August, home price rises fell sharply as quickly rising mortgage rates sapped home demand. The S&P CoreLogic Case-Shiller index revealed on Tuesday that prices increased 13.0 per cent year-over-year in August, a decrease from July's 15.6 per cent gain. That is the most considerable deceleration in the history of the index.

Meanwhile, the 10-City composite gained 12.1 per cent year on year, down from 14.9 per cent in June, while the 20-City Composite rose 13.1 per cent, down from 16.0 per cent the previous month.





Miami saw the highest increase in home prices, with a 28.6 per cent increase. Tampa, Florida, came in second with a 28.0 per cent rise. Charlotte, North Carolina, came in third place with 21.3 per cent.

The Case-Shiller index is delayed by two months, so it may not reflect the most recent market slump. Even if increasing loan rates have made homeownership out of reach for millions of Americans, prices are still higher than a year ago.

The interest-sensitive housing market has taken the brunt of the Federal Reserve's vigorous policy tightening and slowing campaign. Policymakers have already raised the benchmark federal funds rate five times in a row, including three 75-basis-point increases in June, July, and September. They show no signs of slowing down in their efforts to combat inflation, which is still near a 40-year high.

According to the most recent data from mortgage lender Freddie Mac, the average rate on a 30-year fixed mortgage increased to 6.94 per cent, which is more than double the rate just one year earlier when it was 3.09 per cent.

FAQ:

Where is the Federal Reserve Bank headquartered?
Washington DC.

When was Case-Shiller Index developed?
1980