Tue Sep 10 16:07:00 UTC 2024: ## Home Price Growth Slows in July as Mortgage Rates Remain High
**Irvine, CA – September 10, 2024** – CoreLogic®, a leading global property information provider, reported that US home price growth continued to cool in July 2024, reaching a year-over-year increase of 4.3%, down from 4.7% in June. This marks the third consecutive month with annual gains below 5%. On a month-over-month basis, home prices were essentially flat, decreasing by a mere 0.01%.
The slowdown is largely attributed to elevated mortgage interest rates, which are impacting buyer sentiment and causing sales to remain low. While July marked the 150th consecutive month of annual home price growth, monthly gains are starting to decline, suggesting further cooling in the coming months. CoreLogic forecasts a meager 0.2% price increase in August and a 2.2% rise in 2025.
Dr. Selma Hepp, Chief Economist for CoreLogic, highlighted the impact of high mortgage rates on housing demand: “Housing demand continued to buckle under the pressure of high mortgage rates and unaffordable home prices, leading to a considerable slowing of home price gains during the summer.”
Hepp also expressed uncertainty about the future of home prices, emphasizing the influence of anticipated rate cuts from the Federal Reserve: “The question for home prices going forward is whether the upcoming rate cut from the Fed and expected continuation of falling mortgage rates will be sufficient to motivate potential homebuyers.”
While lower mortgage rates could boost affordability and buyer demand, the usual seasonal slowdown in the housing market is likely to limit any significant surge in activity.
Despite the national slowdown, some states saw significant year-over-year gains in home prices. Rhode Island experienced the highest increase at 10.6%, followed by New Jersey (9.7%), Connecticut (8.3%), South Dakota (8.1%), and Illinois (7.5%).
CoreLogic’s Market Risk Indicator (MRI) identified several metros at high risk of price declines over the next 12 months, including Gainesville, FL, Palm Bay-Melbourne-Titusville, FL, Atlanta-Sandy Springs-Roswell, GA, Lakeland-Winter Haven, FL, and Ogden-Clearfield, UT.
The next CoreLogic HPI press release, featuring August 2024 data, is scheduled for October 1, 2024, at 8 a.m. EST.
**About CoreLogic:**
CoreLogic is a leading provider of property insights and innovative solutions, working to transform the property industry by putting people first. For more information, please visit http://www.corelogic.com.
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