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CoreLogic: ‘Balance’ Returning as Home Prices Growth Dips Amid Higher Mortgage Rates
![](https://newslink.mba.org/wp-content/uploads/2022/09/CoreLogicChartSept20222400.jpg?w=400&h=244&crop=1)
CoreLogic, Irvine, Calif., said annual home price appreciation fell for the third straight month in July as higher mortgage rates cooled off a red-hot housing market.
The monthly CoreLogic Home Price Index posted a still-elevated 15.8 percent annual gain in July, but was well down from its 20-percent-plus pace earlier this year. On a monthly basis, the HPI fell by 0.3 percent from June to July, compared to 0.5 percent growth from May to June.
![](https://newslink.mba.org/wp-content/uploads/2022/09/CoreLogicChartSept20222.jpg)
CoreLogic noted as 30-year, fixed-rate mortgages neared 6% this summer, some prospective homebuyers pulled back, helping ease overheated and unsustainable price growth. Looking ahead, CoreLogic interim lead economist Selma Hepp expects to see a “more balanced” housing market, with year-over-year appreciation slowing to 3.8% by July 2023.
“Following June’s surge in mortgage rates and the resulting dampening effect on housing demand, price growth is taking a decisive turn,” Hepp said. “And even though annual price growth remains in double digits, the month-over-month decline suggests further deceleration on the horizon. The higher cost of homeownership has clearly eroded affordability, as inflation-adjusted monthly mortgage expenses are now even higher than they were at their former peak in 2006.”
The report said annual appreciation of detached properties (16.1%) in July was 1.5 percentage points higher than that of attached properties (14.6%).
Tampa, Fla., logged the highest year-over-year home price increase of the country’s 20 largest metro areas in July, at 29.7%, while Miami moved into the second slot at 27.1%. Florida and South Dakota posted the highest home price gains, 29.6% and 23.7% respectively. Tennessee ranked third with a 23.2% year-over-year increase. Washington, D.C. ranked last for appreciation at 2.4%.