Case Shiller Home Prices: Further Gains Before Rate Spike

Bottom Line:  Prices rose in July as the housing market continued to rebound in the months leading up to the latest surge in mortgage rates. Prices were higher in nearly every primary metro market, with the exception of Portland. Year-on-year prices in many regions are still modestly lower, but several have still seen gains. Overall, the sharp correction in home prices had ended as the market found new clearing levels amid continued solid underlying demand for housing. The latest move in mortgage rates will test the robustness of that demand amid still lower affordability.