The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the US, rose 1 per cent in July from a year earlier after holding steady the previous month.

On a seasonally adjusted basis, the index rose 0.6 per cent in July from a year earlier.

Rising mortgage rates have brought homeownership affordability near its lowest level in decades, reducing demand.

However, rising rates are also scaring potential home sellers, who will need to forego low mortgage rates to buy another home at a higher rate. The supply of homes for sale has remained unusually low, providing support for home prices.

The median sales price of existing homes rose 3.9 per cent to $407,100 in August from a year earlier, according to the National Association of Realtors.

The Case-Shiller index, which measures repeat sales data, is released two months late and reflects a three-month moving average. Homes typically go under contract a month or two before closing, so July's data is based on purchasing decisions made earlier in the year.

The index declined between June 2022 and January 2023, after which it began to rebound on a monthly basis.

Craig Lazzara, managing director at S&P Dow Jones Indices, said, "The price gains that began in January have now erased the earlier declines."

While the market rally could be truncated by rising mortgage rates or general economic weakness, the breadth and strength of this month's report is consistent with an optimistic view of future results.

The Case-Shiller 10-city index rose 0.9 per cent in the year to July, compared with a 0.5 per cent decline in June. the 20-city index rose 0.1 per cent, compared with a 1.2 per cent decline in June. the 10-city index rose 0.1 per cent, compared with a 1.2 per cent decline in June. the 10-city index rose 0.1 per cent, compared with a 1.2 per cent decline in June.

Economists surveyed by The Wall Street Journal expect the 20-city index to rise 0.3%.

Chicago, with an annual home-price growth rate of 4.4%, was the nation's fastest-growing city, followed by Cleveland at 4%. The weakest market was Las Vegas, where home prices fell 7.2 percent annually.

Another indicator of home price growth released Tuesday by the Federal Housing Finance Agency (FHFA) showed that home prices increased 4.6 percent in July from a year earlier. Adjusted for seasonal factors, the FHFA's index rose 0.8 per cent in July from a year earlier.