US house price growth slows slightly in July

Home price gains in the US slowed slightly in July.

The S&P CoreLogic Case-Shiller national home price index rose by 0.7% month-on-month, which nudged the year-on-year comparison from 5.0% to 5.1%.

An analogous index for the 10-largest cities Stateside rose at a 4.2% year-on-year pace in July, following a rise of 4.1% in the month before.

An equivalent gauge for the 20 largest cities also slowed, from a 5.1% clip in June to 5.0% in July, but was unchanged month-on-month.

Economists had penciled in a retreat for the 20-city composite index of 0.1% over the month (5.0% year-on-year).

The largest year-over-year gains in each of the last six months were seen in home prices in Portland, Seattle, and Denver, according to S&P.

Portland experienced the steepest rise in prices, with an increase of 12.4%, followed by Seattle with a rise of 11.2% and Denver with a gain of 9.4%, S&P said.

“Both the housing sector and the economy continue to expand with home prices continuing to rise at about a 5% annual rate,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

“The statement issued last week by the Fed after its policy meeting confirms the central bank’s view that the economy will see further gains. Most analysts now expect the Fed to raise interest rates in December. After such Fed action, mortgage rates would still be at historically low levels and would not be a major negative for house prices."