Longtime watchdog says home prices last month declined at the fastest rate on record
Decline "may well continue," analyst says.
Home prices last July declined at the fastest rate on record, reflecting continued squeezing in the real estate market, according to a longtime real estate watchdog whose housing index stretches back to the latest 1980s.
A report from the S&P Corelogic Case-Shiller Index released on Tuesday showed year-over-year home prices last month experiencing "the largest deceleration in the history of the index," S&P DJI Managing Director Craig Lazzara said in the report.
"“The theme of strong but decelerating prices was reflected across all 20 cities" in the index's composite, Lazzara said, adding that "in every case July’s gain was less than June’s."
"As the Federal Reserve continues to move interest rates upward, mortgage financing has become more expensive, a process that continues to this day," he said. "Given the prospects for a more challenging macroeconomic environment, home prices may well continue to decelerate. ”
The Federal Reserve has been edging interest rates upward in an effort to combat rising inflation, with economists warning that aggressive attempts in that direction risk a serious recession.