US single-family home prices rose 0.3% in July, adding to affordability pressures as mortgage rates remain elevated and demand in the housing market stays weak.
The increase followed a flat reading in June, while prices were 2.6% higher than a year earlier. The rise came despite growing housing inventory, suggesting that elevated borrowing costs have not yet translated into broad declines in property values.
The average rate on a 30-year fixed mortgage reached 7.03% last week, its highest level since January 2025. Higher financing costs are making home purchases more expensive and creating additional challenges for prospective buyers.
Prices increased in seven of the nine US census regions during July. The Middle Atlantic recorded the strongest monthly gain at 1.5%, followed by the Pacific region at 0.6%. Prices declined 0.8% in the Mountain region and 0.5% in the East South Central region.
On a yearly basis, all nine regions recorded gains. The Middle Atlantic led with a 6.3% increase, while the Mountain region posted the smallest rise at 0.6%.
The latest figures highlight the conflicting forces shaping the US housing market, with limited affordability and weak demand occurring alongside continued price growth.
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