Home prices are finally cooling

Nearly one-third of the 100 largest cities in the U.S. saw annual price declines in June.

Transcript

00:00The once red-hot housing market is showing signs of cooling off.

00:04Annual home price growth in June slowed to just 1.3 percent,

00:08down from 1.6 percent in May and the slowest rate in two years.

00:13That's according to mortgage technology firm ICE.

00:1527, or nearly a third of the 100 largest U.S. cities,

00:19saw annual price declines last month,

00:22a level of weakness not seen since the early days of the Fed's rate hikes back in 2022.

00:27The main culprit? Mortgage rates.

00:30Still hovering in the high 6 percent range, keeping buyers on the sidelines.

00:34And with more homes hitting the market, especially in the south and west,

00:38some of that upward pressure on prices is starting to eat.

00:41But not everywhere.

00:43Prices are still climbing sharply in the northeast and midwest.

00:46Rochester, New York, led all major markets in early June,

00:49with prices up 8.1 percent from a year ago,

00:53followed by Hartford and Bridgeport, Connecticut, where prices rose more than 7 percent.

00:57That'll do it for your daily briefing from the New York Stock Exchange.

01:01I'm Caroline Woods with The Street.