Housing prices continued to gain in July, but growth is slowing, according to a study released Tuesday.
The S&P/Case Shiller Home Price Indices, which measure price growth in 10- and 20-metropolitan area composites, showed increases of 1.9% and 1.8% from June, respectively. Combined, the indices showed a growth of 0.6% on a seasonally adjusted basis. That’s slower that the 0.8% gain economists predicted, according to a Reuters poll.
All 20 cities have showed gains for the past four months in a row, according to Standard & Poor. Phoenix has posted 22 consecutive months of growth.
Although the growth continued in June, there are signs it is slowing, according to David Guarino, director of global index communications for the S&P Dow Jones Indices.
“Although home prices in all the cities increased, 15 cities and both Composites saw these monthly rates decelerate in July versus June,” Guarino wrote in a Tuesday blog post.
Although price appreciation appears to be slowing, it has continued to grow through the summer despite rising interest rates, which spiked in recent months over worries that the Federal Reserve would wind back its $85bn-per-month bond-buying program. When the Fed shocked investors last week by keeping the program in place, rates dropped to a 5-week low of 4.50%.