US home prices hit another record high

• US home prices hit a record in June, according to the S&P CoreLogic Case-Shiller index.
• Prices rose 5.4% on an annual basis, though the increase was a deceleration from the prior month.
• The housing market has faced a logjam this summer, with sale volumes and construction slowing.

Home prices hit another all-time high this summer.

The S&P CoreLogic Case-Shiller US National Home Price NSA Index climbed 5.4% from a year ago in June. While this took it to a record, in a moderately positive sign, the rate of increase decelerated from the prior month, according to the new data .

Meanwhile, the 20-City Composite notched a year-over-year jump of 6.5% in June, falling short of May's 6.9% gain.

New York led the cohort, where prices rose 9% annually that month. San Diego and Las Vegas followed, scoring 8.7% and 8.5% price gains, respectively.

Elevated mortgage rates complemented price highs that month, with the 30-year fixed rate hovering near 7% in June. While home prices typically decline when borrowing costs rise, a lack of supply has kept homebuyers financially fenced out.

Home-sale volumes have crawled through this summer as prices have reached uncomfortable levels. Prior data from the National Association of Realtors showed that existing-home sales slumped 5.4% between May and June . This has since improved, as a recent NAR report found that sales jumped 1.3% in July .

Developers have also taken a step back recently, causing US construction to hit a four-year low in July. With priced-out consumers unable to absorb new housing, builder confidence hit a new low in August .

How long will this last?

In June, Bank of America forecast that price momentum would keep up until at least 2026, with the market set to appreciate 4.5% and 5% this year and the next , respectively.

A more recent report from Fitch Ratings outlined that prices could rise as much as 5% this year . Price growth could accelerate once the Federal Reserve starts cutting rates, the firm previously said. The Case-Shiller index has so far gained 4.6% since January.