Updated
Updated · Mortgage Professional · Aug 18
US Home Prices Rise 3.4% in July as Wealthy Buyers Defy 6% Mortgage Rates
Updated
Updated · Mortgage Professional · Aug 18

US Home Prices Rise 3.4% in July as Wealthy Buyers Defy 6% Mortgage Rates

3 articles · Updated · Mortgage Professional · Aug 18

Summary

  • National home prices rose 0.27% in July from June, while annual growth accelerated to 3.4%—the fastest in a year—showing the market is leveling off rather than correcting.
  • Redfin said affluent buyers are sustaining demand despite mortgage rates in the mid-to-high 6% range, while ordinary buyers remain squeezed by affordability and a broader sales slump.
  • San Francisco led major metros with a 1.5% monthly gain and 13.3% annual jump, as AI-sector hiring and luxury demand also lifted Oakland and West Palm Beach.
  • Twenty of 49 metros still posted monthly declines, and Texas remained the weakest pocket: San Antonio fell 2.1% year over year, with Fort Worth, Dallas and Austin also down about 1%.
  • In those softer markets, sellers outnumber buyers roughly 2 to 1, forcing price cuts and giving buyers leverage even as national prices keep edging higher.

Insights

With Texas sellers slashing prices amid piling inventory, is the Sun Belt's historic real estate boom officially dead?
Are cash-rich tech elites permanently pricing out ordinary buyers as AI wealth artificially inflates the national housing market?