CHICAGO, Illinois: Amidst higher mortgage rates, which are curbing demand, several surveys showed that U.S. single-family home prices slowed again in September.

Month-over-month in September, the S&P CoreLogic Case Shiller national home price index dropped 0.8 percent, with monthly house prices falling in July for the first time since late 2018.

Slowing from August's increase of 12.9 percent, house prices rose by just 10.6 percent year-on-year in September.

Experts note that aggressive Federal Reserve interest rate hikes aimed at curbing high inflation have hit the housing market.

Data from mortgage finance agency Freddie Mac showed that in October, 30-year fixed mortgage rates went over 7 percent for the first time since 2002.

While this rate dropped back to an average of 6.58 percent last week, it remains well above the 3.10 percent average during the same period last year.

In a statement, Craig Lazzara, managing director at S&P DJI, said, "As the Fed continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable."

In data released this month, sales of previously owned homes recorded their ninth consecutive monthly decline in October, while single-family homebuilding and permits for future construction dropped to their lowest levels since May 2020.

However, tight supply and a surge in remote work during the COVID-19 pandemic led to a housing market boom, driving prices to record highs.

William Doerner, supervisory economist in FHFA's Division of Research and Statistics, said, "The rate of U.S. house price growth has substantially decelerated. This deceleration is widespread, with about one-third of all states and metropolitan statistical areas registering annual growth below 10 percent."