Single-family home prices rise further in August, agency says

WASHINGTON — Single-family house prices increased further in August, ​despite rising mortgage rates weighing on demand for housing.

House prices rose 0.3% after a downwardly revised ‌0.2% gain in July, the Federal Housing Finance Agency said on Tuesday. ⁠Prices were previously reported to ​have climbed 0.3% in ⁠July.

They increased 2.4% in the 12 months through ‌August, after advancing ‌2.5% year-on-year in July.

Higher home prices and mortgage ⁠rates, which have surged amid ⁠the U.S.-Israeli war with Iran and its inflationary fallout, have fueled what economists describe as an affordability crisis, a theme that has dominated campaign messaging ahead of next Tuesday's midterm elections.

The average rate on ‌a 30-year fixed-rate mortgage surged ​by more than 140 basis points since the conflict started at the end of February. The rate has eased slightly, averaging 7.32% last week, data from mortgage finance firm Freddie Mac showed.

Monthly house prices increased in five of the nine census regions in ​August, rising 2.1% in the East South Central region. ‌There were solid ‌gains ⁠in West North Central, West South Central and East North Central regions. But prices fell 0.8% in New England and were unchanged in the Middle Atlantic region.

On a ‌year-over-year basis, prices ​increased in all nine regions, ‌with the East North ⁠Central ​region posting a 4.4% jump.

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