U.S. Home Prices Rise 0.3% in August, Up 2.4% Year Over Year

Key Facts

The Federal Housing Finance Agency’s U.S. house price index rose 0.3% in August from July on a seasonally adjusted basis, while prices increased 2.4% year over year through August 2026, the agency said. The monthly reading followed a revision to July’s reported increase, from 0.3% to 0.2%. The figures show prices continued to rise, with annual growth below the monthly increase, while the July revision indicates the previous reading was above the revised estimate. The FHFA index measures changes in single-family home values using a weighted repeat-sales methodology based on historical transaction data. The agency said home prices nationwide rose 0.3% in August from the previous month.

Regional performance varied during the month, with changes ranging from a 0.8% decline in New England to a 2.1% increase in East South Central. Year over year, the Mountain region posted the smallest increase, at 0.5%, while East North Central led with a 4.4% rise in the twelve months through August. The divergence highlights different price trends across regions, even as the national index recorded monthly and annual gains. The FHFA database covers all 50 states and more than 400 U.S. cities, drawing on information from more than 100 million sales and refinancing transactions. The agency said the index data extend back to the mid-1970s.

In a separate reading, the national S&P Cotality Case-Shiller index rose 2.1% year over year in August, compared with a 1.9% increase in July, according to S&P Dow Jones Indices. The 20-city index posted annual growth of 2.7%, after 2.5% in the previous month, explaining why a higher rate is cited for major cities than for the national index. Among cities, Chicago recorded the largest annual increase at 6.7%, followed by New York at 6.2% and Cleveland at 4.3%. By contrast, prices in Seattle fell 2.0% year over year, the weakest performance among the 20 cities. In real terms, U.S. home prices fell for the 15th consecutive month in August, with inflation at 3.4% and the national index up 2.1% in nominal terms.

On housing activity, new-home sales totaled 676,000 units at a seasonally adjusted annual rate in September, down 0.6% from August and 5.3% from September 2025, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The inventory of new homes for sale fell to 476,000 at the end of September, down 1.0% from the previous month and 2.3% from a year earlier. That inventory represents an 8.4-month supply at the current sales pace. The median price of new homes sold was $400,400, up 3.9% from August but down 3.9% from September 2025. In August inflation data, the headline consumer price index rose 3.4% year over year, while the shelter index increased 0.3% during the month after a 0.1% rise in July, according to the Bureau of Labor Statistics.

On financing, the average rate on a 30-year fixed-rate mortgage was 7.32% in the week ended October 22, compared with 7.40% the previous week and 6.19% a year earlier, according to the Associated Press. The average rate on a 15-year fixed-rate mortgage was 6.68%, down from 6.71% the previous week, according to Freddie Mac. The Federal Open Market Committee met on October 27 and 28, with a news conference scheduled for October 28, according to the Federal Reserve’s calendar. The next FHFA house price report is due on November 24, 2026, and will include monthly data through September and quarterly data through the third quarter of the year. The next release will allow August’s reading to be compared with newer monthly data and third-quarter indicators.