U.S. home price growth accelerated to 1.5% in June

U.S. home price growth accelerated to 1.5% in June as regional results diverged. The S&P Cotality Case-Shiller National Home Price Index posted a 1.5% annual gain for June, following May's 1.2% rise. The 10-City Composite climbed 2.9% from a year earlier. The 20-City Composite added 2.1%.

Chicago led the 20 cities with a 6.9% annual gain, followed by New York at 4.8% and Cleveland at 4.1%. Seattle had the weakest result, falling 2%, followed by Las Vegas, down 1.9%, and Denver, down 1.2%. U.S. home values were lower in real terms for a 13th consecutive month. June inflation was 3.5%, roughly 2 percentage points above the 1.5% home price gain.

Rebecca Kaufman, Associate Director of Commodities at S&P Dow Jones Indices: “As financing costs are kept high for prospective buyers, current homeowners remain reluctant to give up the low mortgage rates secured in prior years.”

Before seasonal adjustment, the U.S. National and 20-City Composite each gained 0.4% month over month; the 10-City Composite advanced 0.5%. After seasonal adjustment, the U.S. National, 10-City and 20-City composites rose 0.1%, 0.3% and 0.2%, respectively.