August Home Price Growth Slows to 1.5 Percent

Annual home price growth slowed to 1.5 percent in August. This figure marks a distinct deceleration from prior periods. The ICE September Mortgage Monitor confirms this trend. Homeowners now face a complex cost environment. Insurance premiums remain at record levels despite slowing growth rates.

Property insurance accounts for 9.6 percent of the average monthly mortgage payment. The average single-family holder pays a record $209 per month. This amount is nearly 80 percent higher than in early 2020. The burden varies significantly by location. New Orleans sees insurance costs at 24.3 percent of mortgage payments. San Jose reports a much lower share of 4.3 percent.

Insurance Costs Hit Record Highs

Annual property insurance costs rose 8.7 percent. This growth rate is lower than the 15.1 percent peak at the end of 2024. The pace of increase is moderating. Coverage limits rose 5.5 percent over the past year. This increase accounted for roughly two-thirds of the total cost growth. The cost per $1,000 of coverage rose 3 percent.

Regional trends show sharp divergence. Greenville, South Carolina, saw the largest annual increase of 15.8 percent. Honolulu followed with a 14.7 percent rise. Minneapolis increased by 13.1 percent. Many of these markets suffered from recent hurricanes or wildfires. Miami and New Orleans saw among the smallest annual increases. These two cities remain the most expensive insurance markets in the nation.

Switching Carriers Yields Record Savings

Homeowners who switched private carriers saved a record 6.6 percent. This is the largest savings rate since data tracking began in 2013. Those who stayed with their current carrier saw premiums rise by 10.4 percent. Switchers saved $440 annually compared to those who remained. They also secured lower deductibles and higher coverage limits.

Mortgage Delinquency Rates Decline in July

The national mortgage delinquency rate fell to 3.39 percent in July. This represents a 16 basis point decrease. The rate is now 41 basis points below the pre-pandemic benchmark. The gap compared to July 2025 is the narrowest in seven months. Early-stage delinquencies improved the most, falling by 73,000 cases.

Loans 90 or more days past due dropped by 7,000 to 563,000. This extends the decline trend that started after the February peak. Volumes remain 21 percent higher than a year ago. Seriously past-due mortgages are up 28 percent year over year. However, the overall trend shows a clear improvement in borrower performance.