U.S. home price growth slowed in June: Case-Shiller report

Yahoo Finance Live anchor Dave Briggs breaks down the latest Case-Shiller report, which found that home price growth slowed in the month of June and likely will continue doing so in the months ahead.

Video transcript

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DAVE BRIGGS: All right, let's get you up to speed now on the housing sector. Home prices in June were 18% higher than during the same month last year, that's according to the S&P CoreLogic Case-Shiller indices. And that's a weaker pace than in May of this year, which showed a 19.9% annual gain. Another indication that, yes, things are slowing down. But this is still a very strong housing sector.

Case-Shiller also showed Tampa, Miami, and Dallas record the highest year-over-year price increases. And listen to them, 35%, 33%, and 28% respectively. You want to talk about a drop off, there not seeing anything like it in Florida and most of Texas as well.

Another report last week showed home prices fell 0.7% from June to July. And that was the first monthly decline in nearly three years. The largest single month decline in prices since 2011. And that's really the one standout note there in the sector.

Also, a note out today from Goldman saying, they expect price growth to stall completely averaging, 0% in 2023. Always the backdrop to this is, of course, mortgage rates, which Fannie Mae and Freddie Mac now say will plunge to 4.5% next year. Right now, they're more than a point higher than that.

So that could get some people to stay on the sidelines waiting for mortgage rates to come down. On the other hand, they're seeing prices come down. So might just result in further stalling here. Rachelle.