The pace of annual home price gains slowed again in most U.S. cities in December, while Seattle and San Francisco saw prices swing to negative territory, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. 

Specifically, the national index rose 5.8% year-over-year, compared to a 7.6% annual gain in November. The index was down 0.8% compared to November. 

“The prospect of stable, or higher, interest rates means that mortgage financing remains a headwind for home prices, while economic weakness, including the possibility of a recession, may also constrain potential buyers,” S&P DJI Managing Director Craig Lazzara noted in a press release. “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken.” 

In Phoenix, home prices posted a 2.9% year-over-year gain in December; month over month, they were down 1.9%. 

The 10-city composite index rose 4.4% on a yearly basis and fell 0.4% on a monthly basis, while the 20-city composite rose 4.6% annually and slid 0.5% monthly.