According to the September 2026 U.S. Home Price Insights report from Cotality, national home price growth remained modest, rising 1.4% year over year. Mortgage rates continue to impact the housing market, as July experienced a cooldown.
However, as Cotality’s Chief Economist Dr. Selma Hepp points out, beneath the headline numbers, momentum is shifting meaningfully. Select markets experiencing sharper price slowdowns have seen stronger growth in active inventory.
“As we move through the remainder of the year, local labor market dynamics and affordability constraints will continue to shape housing market performance as much as broader macroeconomic shifts, especially the direction of mortgage rates,” said Hepp.
Hepp said that several high-cost coastal markets, which previously posted strong yearly gains, are now showing near-term weakness. San Francisco was up 7.0% year over year, but prices fell 1.4% month over month.
