US sees record slowdown in home prices

U.S. home prices saw a record slowdown in August, falling by 2.6 percent as the Federal Reserve moves aggressively to raise rates — making it more costly to afford a mortgage.

The S&P CoreLogic Case-Shiller Index released Tuesday shows a 13 percent annual gain in August for home prices, but a sharp 2.6 percent drop from July to August. That’s the largest monthly drop on record.