Home prices cooled in July at the fastest rate in the history of S&P Case-Shiller Index

A 'for sale' sign is displayed outside a single family home on September 22, 2022 in Los Angeles, California.

According to a new report, US home prices fell in July at the fastest rate in the history of the Case-Shiller index.

Home prices in July were higher than a year ago but less so than in June. The national prices increased by 15.8% in July, below the 18.1% increase in the previous month.

The 10-City index rose 14.9% compared to June's 17.4%. The 20-city index gained 16.1%, down from the previous month. The year-over-year gains in July were lower than in June.

The annual gains in June and July were different. The difference between the two monthly rates of gain is the largest in the index's history.

In July, Miami and Dallas had the highest annual gains among the 20 cities. Washington, D.C., Minneapolis and San Francisco were the only places where gains were less than a year ago.

Home prices fell from June to July according to the National Association of Real Estate. The decline was three times the average decline during that time.

In August, the share of homes with price cuts remained the same as last year.

George Ratiu, senior economist and manager of economic research for Realtor.com, said that the market is different for homeowners planning to list.

Home prices are dropping because of affordability issues. The average rate on the 30-year fixed mortgage was 3% by the beginning of the year, but had briefly surpassed 6% by the end of June. The average monthly payment is 70% higher than it was a year ago, as it was in July, when it was in the high 5% range.

Mortgage financing has become more expensive because of the Federal Reserve's interest rate moves. Home prices may decelerate given the prospects for a more challenging macroeconomic environment.