FHFA: U.S. single-family home prices edge higher in August

WASHINGTON - U.S. single-family home prices rose again in August, even as higher mortgage rates continued to dampen housing demand.

The Federal Housing Finance Agency said prices increased 0.3% after a downwardly revised 0.2% gain in July. July had previously been reported as a 0.3% increase.

Over the 12 months through August, prices were up 2.4%, compared with a 2.5% year-over-year rise in July.

Rising home prices and mortgage rates, which have climbed amid the U.S.-Israeli war with Iran and the resulting inflationary pressure, have deepened what economists call an affordability crisis. That issue has also featured prominently in campaign messaging ahead of the midterm elections.

The average rate on a 30-year fixed mortgage has jumped by more than 140 basis points since the conflict began at the end of February. The rate has eased somewhat, averaging 7.32% in the latest week, according to mortgage finance company Freddie Mac.

Month to month, house prices rose in five of the nine census regions in August, led by a 2.1% increase in the East South Central region. There were also solid gains in the West North Central, West South Central and East North Central regions. Prices declined 0.8% in New England and were flat in the Middle Atlantic region.

Compared with a year earlier, prices rose in all nine regions, with the East North Central region showing the largest gain at 4.4%.