US home price growth slowed in October

Economic IndicatorsAssociated Press

Housing has been a negative this year: Kevin Hassett

White House Council of Economic Advisers Chairman Kevin Hassett on the state of the U.S. economy and the housing market.

WASHINGTON (AP) — U.S. home price growth slowed in October, a likely consequence of higher mortgage rates having worsened affordability and causing sales to fall.

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The S&P CoreLogic Case-Shiller 20-city home price index rose 5 percent from a year earlier, down from an annual gain of 5.2 percent in September. That's down from a 5.5 percent yearly gain in the previous month.

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Home prices have dropped as would-be buyers are struggling to afford homes. Prices have consistently climbed faster than wages, a challenge that was overcome until last year by historically low mortgage rates. But borrowing costs began to rise last year after President Donald Trump cut taxes by increasing the budget deficit and the Federal Reserve hiked interest rates.

Las Vegas reported the strongest price growth of 12.8 percent.

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