Following its unexpected rebound in May (from three months of declines), US home prices in America's 20 largest cities were expected to rise again (+0.1% MOM) in June (according to the latest data from S&P Cotality Case-Shiller).

Instead prices actually accelerated more, up a sizable 0.24% MoM, pulling home prices up 2.1% YoY - the fastest acceleration in a year...

“Seasonal factors continue to support monthly price growth," said Rebecca Kaufman, Associate Director of Commodities at S&P Dow Jones Indices.

"Because June typically falls near the peak of the homebuying season, price appreciation often moderates and market activity cools in the months ahead."

For the fourth consecutive month, Chicago led all metros with a 6.9% annual increase in June, followed by New York (4.8%) and Cleveland (4.1%).

Meanwhile, Seattle recorded the largest annual decline at 2.0%, followed by Las Vegas (-1.9%) and Denver (-1.2%).

"This geographic divide reflects a years-long trend, with housing markets in the Northeast and Midwest regaining strength while many Western and Sunbelt markets soften," says Kaufman.

Prices remain oddly coupled with Fed Reserves, implying stability, rather than acceleration, from here...

“The housing market remains under pressure, with 30-year mortgage rates holding near 6.5% in June,” Kaufman concluded.

“As financing costs are kept high for prospective buyers, current homeowners remain reluctant to give up the low mortgage rates secured in prior years.”