The S&P Cotality Case-Shiller U.S. National Home Price Index posted a 1.5% annual gain in June, up from a 1.2% rise in May, according to S&P Dow Jones Indices. Even so, June marked the 13th consecutive month that U.S. home values fell in real terms, with inflation at 3.5%.
Chicago led the 20-city index for the fourth straight month with a 6.9% annual increase, followed by New York (4.8%) and Cleveland (4.1%). Seattle posted the weakest reading (-2.0%), with Las Vegas (-1.9%) and Denver (-1.2%) close behind—a divergence S&P DJI said reflects a years-long pattern of Northeast and Midwest markets regaining strength while Western and Sunbelt markets soften.
Thirty-year mortgage rates held near 6.5% in June, and "as financing costs are kept high for prospective buyers, current homeowners remain reluctant to give up the low mortgage rates secured in prior years," said Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices.
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