Home prices rise 2.1% year-over-year in August despite high mortgage rates

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 2.1% annual increase in home prices for August 2026, up from a 1.9% rise the previous month, according to HousingWire.

Despite mortgage rates exceeding 7% in September, new home sales reached 676,000, supported by rate buydowns offered by builders, which have helped sustain demand in the new home market.

However, the existing home sales market has not benefited from such rate buydowns, indicating differing dynamics between new and existing home sales sectors.

Inventory levels have been rising, improving the supply-to-demand balance since mid-June, which has contributed to cooling price growth even as wages outpace housing costs.

HousingWire notes that while price growth is slowing, the housing market remains healthy, with year-over-year comparisons currently favorable due to minimal price increases last year.

The Case-Shiller index data lags several months behind other housing market data, suggesting that price growth may slow further as mortgage rates remain elevated.