Home prices showed a month-over-month deceleration from June to July, the first such drop in three and a half years, the S&P CoreLogic Case-Shiller Indices showed this week.

The nationwide 0.33% drop was the first decline in the national home price index since a 0.24% decline from December 2018 to January 2019. The index increased for 41 consecutive months, rising by more than 51% overall, until July.

“Although U.S. housing prices remain substantially above their year-ago levels, July’s report reflects a forceful deceleration,” said Craig J. Lazzara, managing director at S&P DJI. 

“As the Federal Reserve continues to move interest rates upward, mortgage financing has become more expensive, a process that continues to this day. Given the prospects for a more challenging macroeconomic environment, home prices may well continue to decelerate.”

The numbers were similar in the 20-city composite index, measuring home prices in 20 of the largest cities across the U.S. That index saw a 0.75% drop from June to July. Just like the national index, it was the first month-over-month decline in the 20-city composite index since January 2019.