Case-Shiller, FHFA show pronounced cooling in housing market

Economic worries and affordability challenges continued to weigh on the housing market, new data shows, hinting that the unusually slow summer sales could portend a more bearish market in the coming months.

Housing prices rose 2.3% year-over-year in May, according to new data from the S&P CoreLogic Case-Shiller Index. This is the slowest increase in nearly two years, since July 2023, and is a drop from 2.7% in April.

Prices rose just 0.4% from April on an unadjusted basis, the slowest rise since January. Seasonally adjusted prices fell 0.3%, a worrisome sign considering this time of year is normally when home sales prices tick up amidst higher demand.

“Seasonal momentum is proving weaker than usual, and the slowdown is now more than just a story of higher mortgage rates,” said Nicholas…