House prices in US increase 4.2 percent annually in August

(MENAFN) According to the Federal Housing Finance Agency (FHFA), U.S. house prices saw a notable increase of 4.2 percent in August compared to the same month last year. This annual rise indicates a slight deceleration from the previous month's figure, which recorded a year-on-year increase of 4.7 percent in July. The data reflects ongoing trends in the housing market and indicates that while prices are still climbing, the rate of growth is stabilizing.

On a month-to-month basis, house prices also experienced a modest uptick, rising by 0.3 percent in August. This increase surpasses market expectations, which had anticipated a more modest gain of just 0.1 percent. Additionally, the monthly figure follows a smaller increase of 0.2 percent in the preceding month, illustrating a consistent pattern of gradual price appreciation in the housing market.

Anju Vajja, acting deputy director of FHFA’s Division of Research and Statistics, noted that house price appreciation in the United States has remained modest for the sixth consecutive month. This sustained trend suggests a steadying market that is still affected by various economic factors, including interest rates and buyer demand.

However, Vajja pointed out that the slow yet continued growth in house prices, combined with the impact of locked-in interest rates, continues to pose challenges for housing affordability. Many potential buyers are finding it increasingly difficult to enter the market, which may have implications for overall economic stability and housing supply in the future.

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