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By Kristin Myers, Editor-in-Chief

What's Happening Today

Interested in buying a house? If you are, you might be in luck—while home prices continued to increase in June, they've slowed significantly from May, according to the latest S&P CoreLogic Case-Shiller Index released this morning. Home prices were up 18% in June from last year, a drop from May's 19.9% annual increase.

Unfortunately for Tampa, Miami, and Dallas buyers, their cities have seen the biggest increases in home prices—Tampa leads the way with a 35% jump.

Home prices, while still rising and well above where they were in June 2021, have been slowing amid soaring mortgage rates over the past year thanks to inflation-busting interest-rate hikes. And while average mortgage rates are lower than they were in June, they've started to creep upward again. With the central bank likely to hike rates again in September, higher rates could be in our future. The upside? It might cause home price growth to slow even further.

And in the labor market, if you want a job, employers are still hiring. Job openings held steady in July, with 11.2 million openings available, according to the Labor Department's monthly job openings and labor turnover survey (JOLTS). In more good news, layoffs were little changed last month, showing that the job market is still going strong. The Federal Reserve often looks to the labor market as a temperature check of the strength of the U.S. economy. If the jobs market is still going strong, then the Fed will likely conclude that the economy can withstand the pressure of rising interest rates and, in theory, fend off a recession.

Join me on Instagram Live today at 12:30 p.m. EDT for a discussion with Verywell Mind Editor-in-Chief Amy Morin on how to approach estate planning conversations with your family.

- Kristin

Editors' Picks

Home Prices Cooled Again in June (The Balance)

Job Openings Top 11.2 Million in July, Well Above Estimate and Nearly Double the Available Workers (CNBC)

Is Now a Bad Time to Retire? (The Wall Street Journal)

How Much Should You Have in Retirement Savings Right Now? (The Balance)

Goldman Says US Housing Downturn Has Further to Go as Rates Rise (Bloomberg)

How Does a Mortgage Work? (The Balance)

How to Make Money on eBay (The Balance)

Term of the Day

FHA Loan

FHA loans are loans issued by private lenders but backed by the Federal Housing Administration (FHA). Because they're insured by the FHA, these loans can help bring home ownership into reach for low- or moderate-income buyers who might otherwise have a hard time getting approved by conventional lenders.

You'd need a reasonable debt-to-income ratio to qualify for an FHA loan. This means that the amount you spend on all your monthly loan payments should be a relatively low percentage of your total monthly income.

Lenders often look for less than 31% of your income spent on housing payments and 43% (or less) of your income on your total debt. This includes car loans and student loans in addition to your home loan. But it's possible to get approved with ratios closer to 50% in some cases.

Off the Charts

Home price gains are backing down from their peaks as inflation and higher mortgage rates take a toll on the market, a chart of the Case-Shiller Home Price Index shows.

Today at 12:30 p.m. EST, join us on Instagram Live for a discussion with The Balance Editor-in-Chief Kristin Myers and Verywell Mind Editor-in-Chief Amy Morin, on how to approach estate planning conversations with your family. Follow us on Instagram to get updates on The Balance's live events!