Home prices in San Diego, Los Angeles, and Orange counties saw significant increases, with San Diego at 8.7% and LA-OC at 8.2%, according to the Case-Shiller indexes. Overall, 20 cities reported gains, but the annual increase has slowed to 5.4%. High mortgage rates are limiting buyer competition, impacting affordability. Despite a slowdown in price gains and inflation, the gap between home prices and inflation remains larger than historical norms. The Federal Reserve may cut interest rates, but deeper declines are needed to encourage market activity.
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