Record-breaking home prices and soaring interest rates impact US housing market in July

Home prices in the US reached a new high in July, marking the sixth consecutive month of increases. The S&P Case-Shiller US National Home Price Index rose 0.6% month over month and 1% over the last 12 months. The 20-city index, measuring existing home prices in the 20 largest US cities, also saw a monthly increase of 0.9%. The robust housing market is driven by inventory shortages and high demand, although some buyers have been deterred by high borrowing costs. The median home price for existing homes rose 1.9% to $406,700 in July. However, higher mortgage rates and limited inventory have impacted demand, leading to a decline in existing home sales.