09:00 AM EDT, 10/29/2024 (MT Newswires) -- The FHFA's measure of home prices rose by 0.3% in August after an upwardly revised 0.2% increase in the previous month, above the 0.1% gain expected in a survey compiled by Bloomberg as of 7:35 am ET.

Prices were up 4.2% from a year earlier in August.

Prices rose in seven of the nine regions in August from the previous month, but declined in the East North Central and New England regions. The largest gains were seen in the West North Central, West South Central and East South Central regions.

"House price appreciation in the United States remained modest for the sixth consecutive month," said Anju Vajja, deputy director for FHFA's Division of Research and Statistics. "The slow but continued house price growth and the effect of locked-in interest rates led to persistent housing affordability challenges."

The monthly home price index report from the Federal Housing Finance Agency measures single-family home prices across the US with a two-month lag, broken down by region. The FHFA reports percentage gains both from the previous month and a year earlier.

Higher home prices are inflationary and a negative for bonds. The outcome for housing-related stocks is mixed, as higher prices suggest strong demand, but prices that are accelerating too fast can also deter potential buyers.