--- title: Home Prices Fell for the Third Month in a Row description: Home prices fell for three straight months starting this past summer. Still, monthly payments are much higher due to rising mortgage rates. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2022-11-30T18:56:03.000Z' modified: '2024-01-10T17:45:22.000Z' section: Housing tags: - News word_count: 346 canonical: https://money.com/home-price-index-fell-third-month/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Family looking at a house for sale during an open house](https://img.money.com/2022/11/News-Home-Prices-Are-Down.jpg?crop=0px%2C192px%2C2090px%2C1175px&quality=85) The housing market keeps getting cooler. Home prices fell for the third month in a row in September, according to the S&P CoreLogic Case-Shiller National Home Price Index. The index, which measures home prices across the United States, fell 1% between August and September (before seasonal adjustment). It’s the latest evidence of a [sharp turnaround in the housing market](https://money.com/housing-market-wildly-different/). After two years of extraordinary pandemic-fueled growth, prices are falling back to earth thanks in large part to sky-high [mortgage rates](https://money.com/current-mortgage-rates/). “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable,” Craig Lazzara, Managing Director at S&P Dow Jones Indices, said in a [news release](https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20221129-1458251/1458251_cshomeprice-release-1129.pdf). The average interest rate on a 30-year fixed rate mortgage has more than doubled this year, from about 3.2% at the beginning of January to nearly 6.6% today. The [monthly mortgage payment](https://money.com/mortgage-calculator/) on a typically priced home was $2,384 last week, according to [data](https://www.redfin.com/news/housing-market-update-homebuying-demand-ticks-up-rate-drop/) from the real estate brokerage Redfin. That’s 41% higher than the typical payment a year ago. That huge spike in borrowing costs has pushed [homes out of reach](https://money.com/home-prices-need-to-fall-affordable/) for many potential buyers. ## Home prices remain high in the grand scheme All these forces are pushing prices lower, but it’s worth remembering that homes in the United States are still more than 10% more expensive than they were last year, according to the Case-Shiller index. Even though demand from homebuyers has waned, there are significantly fewer houses for sale than there were before the pandemic. “While buyers are stepping aside waiting for more affordable prices and rates – causing the slowdown on price growth – would-be sellers are ... holding tight to the inventory they currently own,” Zillow Senior Economist Nicole Bachaud said in email commentary shared with Money. Bachaud added that as a result, home prices might not fall as much as some people expect them to in the coming months. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/home-price-index-fell-third-month/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "Home Prices Fell for the Third Month in a Row" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/home-price-index-fell-third-month/#webpage", "url": "https://money.com/home-price-index-fell-third-month/", "name": "Home Prices Fell for the Third Month in a Row", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2022-11-30T18:56:03.000Z", "mainEntity": { "@id": "https://money.com/home-price-index-fell-third-month/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/home-price-index-fell-third-month/#breadcrumb" }, "dateModified": "2024-01-10T17:45:22.000Z" }, { "@type": "NewsArticle", "headline": "Home Prices Fell for the Third Month in a Row", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2022/11/News-Home-Prices-Are-Down.jpg?crop=0px%2C192px%2C2090px%2C1175px&quality=85", "width": 1012, "height": 569, "caption": "News-Home-Prices-Are-Down" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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