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Home price growth slows for third consecutive month in June: Case-Shiller index

According to the latest CoreLogic S&P Case-Shiller index, home price growth slowed again in June but remained above the historical average. (iStock)

Annual home price growth slowed in June, marking the third straight month of declines, according to the latest CoreLogic S&P Case-Shiller index.

Home prices rose 18% annually in June, according to the report, down from a 19.9% ​​annual increase in May. On a monthly basis, home prices rose 0.6% from May to June.

But experts noted that the National Composite, a measure of home prices, is seeing significant gains despite the recent decline.

“It’s important to keep in mind that recession and recession are two different things, and prices are still rising at a robust clip,” Craig Lazzara, managing director of S&P Dow Jones Indices, said in a report. “In the first six months of 2022, in fact, the national composite increased by 10.6%. In the past 35 years, only four full years have seen a larger increase.”

If you want to take advantage of your rising home value, you might consider taking the money out of your home with a cash-out refinance. Visit Credible to find your personalized interest rate without hurting your credit score.

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This is where house prices rose the most

According to the Case-Shiller index, a 10-city composite index that looks at home price growth in the top 10 US cities, rose 17.4% annually in June, down from 19.1% annually in May. The 20-city composite also slowed, rising 18.6% year-over-year in June, down from 20.5% year-over-year in May.

Home prices in Tampa, Miami and Dallas saw the largest year-over-year gains among the top 20 cities in June, with annual increases of 35%, 33% and 28.2%, respectively. But one in 20 cities reported the highest annual price increase in June and May.

“Market strength is broadly based as all 20 cities recorded double-digit price increases in the 12 months ended June,” Lazzara said. “However, in 19 out of 20 cases, June’s readings were lower than May’s, showing the impact of degradation at the regional level.”

If you’re interested in tapping into your home equity, you might consider using a cash-out refinance. Borrowers can use Credible’s online marketplace to compare multiple mortgage lenders simultaneously and choose the best interest rate.

Tappable home equity rises to new record highs

House price growth is likely to continue to decelerate

In order to curb decades-high inflation, the Federal Reserve has continued to raise interest rates. But these increased rates are slowing the housing market and driving down prices.

“We have previously noted that mortgage financing has become more expensive as the Federal Reserve raises interest rates, a process that continued as we collected our June data,” Lazzara said. “As the macroeconomic environment remains challenging, home prices may continue to decline.”

At its latest meeting, the Fed raised interest rates for the fifth time this year by 75 basis points, bringing the target range for the federal funds rate from 3% to 3.25%. And it is expected to continue raising rates for the rest of 2022 and into 2023.

“Housing market activity has cooled significantly since June’s surge in mortgage rates, which will broadly slow home price growth and lead to growing concerns about potential home price declines in the future,” CoreLogic Deputy Chief Economist Selma Hepp said in a statement. “Home prices will continue to slow but not decline in most markets over the next year, according to the CoreLogic HPI forecast for June.”

If you want to capitalize on your home’s value before interest rates rise again, you might consider a cash-out refinance. To see if this is the right option for you, contact Credible to speak with a home loan expert and get all your questions answered.

Have a finance-related question, but don’t know who to ask? Email a trusted money expert [email protected] And your question can be answered by Credible in our Money Expert column.

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