U.S. single-family home prices rose 0.3% in July 2026 from June, exceeding expectations for a 0.1% increase after remaining unchanged the previous month, the Federal Housing Finance Agency said. Prices increased 2.6% from a year earlier, the strongest annual gain in nearly one year, despite weak demand and higher housing inventory. The average 30-year fixed mortgage rate reached 7.03% last week, its highest level since January 2025, after rising more than 100 basis points since the U.S.-Israeli war with Iran began in late February. Monthly prices increased in seven of nine census regions, led by a 1.5% gain in the Middle Atlantic, while annual prices rose in every region. Housing affordability remained a central issue ahead of the November 3 midterm elections, which will determine control of Congress.