US house price growth slows in October

(Sharecast News) - House price growth in the States drifted lower in October when compared with a year earlier, despite monthly gains. According to the Federal Housing Finance Agency, in seasonally adjusted terms house prices were ahead by 0.4% month-on-month.

In terms of annual rates of change on the other hand, house prices rose the most in the Middle Atlantic with a gain of 7.0%, whereas in the Pacific division they increased by just 0.7%.

"Annual house price gains have been trending down since February, stabilizing around 4.5 percent during the last three months," said Dr. Anju Vajja, deputy director for FHFA's Division of Research and Statistics.

"Even with elevated house prices and mortgage rates putting continued pressure on affordability, house prices continued to grow at a steady rate, likely due to a historically low inventory of homes for sale."

Separately, S&P Case Shiller reported that the year-on-year increase in home prices slowed from the 4.6% clip observed in September to 4.2% (consensus: 4.1%) in October.