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Year-over-year home price gains inched down in July to 4.3%, according to new data from CoreLogic. This was below June’s 4.7% year-over-year reading and came in below 5% for the third consecutive month.

No states posted annual home price declines. The states with the highest increases year over year were Rhode Island (10.6%), New Jersey (9.7%), Connecticut (8.3%), South Dakota (8.1%), and Illinois (7.5%).

On a month-over-month basis, home prices dipped by a scant 0.01% from June to July. And while CoreLogic noted July was the 150th consecutive month of annual growth, it noted that annual forecasts were pointing to smaller anticipated gains – home prices are forecast to rise in August by only 0.2% by 2.2% next year.

“Housing demand continued to buckle under the pressure of high mortgage rates and unaffordable home prices, leading to a considerable slowing of home price gains during the summer,” said Dr. Selma Hepp chief economist for CoreLogic. “July’s prices were essentially flat from the month before, which was notably cooler than the average gain of 0.4% recorded between June and July in years prior to the pandemic and especially during the pandemic.”

Hepp added, “The question for home prices going forward is whether the upcoming rate cut from the Fed and expected continuation of falling mortgage rates will be sufficient to motivate potential homebuyers who may start to fear cooling labor market and continued uncertainty of a soft landing, along with anticipation around the presidential election. And while lower mortgage rates are a boost to affordability and are likely to help buyer demand, the usual fall housing market slowdown is upon us and is likely to contain any significant surge in activity.”