FHFA: U.S. Home Prices Rose 0.3% in July, Up 2.6% From a Year Ago

The federal scorecard on home prices moved up again in July. The Federal Housing Finance Agency's seasonally adjusted monthly House Price Index (FHFA HPI) rose 0.3% from June - more than economists expected - and prices are now up 2.6% from July 2025, the agency reported Tuesday. That annual pace accelerated from 2.3% in the 12 months through June.

The regional picture was mostly green. Monthly prices rose in seven of the nine census regions, led by the Middle Atlantic at 1.5%. Here in the Pacific region, prices gained 0.6% for the month. The Mountain region was the main outlier, down 0.8% on the month. Year over year, all nine regions posted gains, ranging from 0.6% in the Mountain division to 6.3% in the Middle Atlantic.

The resilience is notable because demand is soft. Reuters' coverage of the release notes that the increase came despite weak demand that has pushed up inventory, and that the combination of higher prices and mortgage rates is feeding the housing affordability debate heading into the November 3 midterm elections. The 30-year fixed averaged 7.03% last week, its highest since January 2025.

The FHFA index is built from purchase-only loans sold to Fannie Mae and Freddie Mac - a broad, repeat-sales measure that lags and smooths the market, so treat it as a value marker rather than a buying signal. For the South Bay, the read is familiar: prices are holding nationally even with rates over 7%, which matches what our local data keeps showing - stable-to-up prices on thin volume, with outcomes decided property by property rather than by the national trend.

Sources: FHFA - https://www.fhfa.gov/news/news-release/fhfa-house-price-index-up-0.3-percent-in-july-up-2.6-percent-from-last-year ; Reuters - https://www.reuters.com/business/us-single-family-home-prices-rise-july-fhfa-says-2026-09-29/

Curious what these market shifts mean for your home? Get a free personalized valuation →