US house prices fall on monthly basis in June

US single-family home prices fell in June, leing to smallest annual increase in nearly a year, as higher mortgage rates pushed buyers to sidelines and boosted housing supply.

House prices dipped 0.1 per cent on a month-on-month basis after being unchanged in May, Federal Housing Finance Agency said on Tuesday. y increased 5.1 per cent in 12 months through June, smallest year-on-year rise since July 2023, after vancing by an upwardly revised 5.9 per cent in May. rise in annual house prices was previously reported to have been 5.7 per cent in May.

Prices were up 0.9  in second quarter compared to January-March quarter. y increased 5.7 per cent between second quarter of 2023 and April-June quarter this year. "US house prices saw third consecutive slowdown in quarterly growth," said Anju Vajja, deputy director for FHFA's division of research and statistics. " slower pace of appreciation as of June end was likely due to higher inventory of homes for sale and elevated mortgage rates."

House price inflation is likely to moderate furr in months ahe as new housing supply has surged to levels last seen in early 2008. existing homes inventory has also risen to highest level in nearly four years.

An outright decline in house prices is, however, unlikely in absence of significant labor market deterioration. Lower mortgages, with Federal Reserve expected to begin its interest rate cutting cycle next month, should boost demand and absorb some of excess inventory.

All nine census regions recorded annual house price gains in June, with big increases in Middle Atlantic, East North Central, New England and East South areas. Prices in West South Central region trailed with a 2.7 per cent increase.