Home price growth continued to decelerate in September, slowing to 3.4% year over year, according to the CoreLogic Home Price Index.

The move was a surprise after home prices rebounded slightly in August, breaking a string of monthly declines. The index found that home prices have been relatively flat since late summer.

CoreLogic writes that some of the factors weighing on home prices include uncertainty surrounding the U.S. election, mortgage rate volatility and the U.S. economy’s mixed signals. For instance, consumer spending continues to be very strong, but the most recent jobs report from the Bureau of Labor Statistics showed a disappointing increase of a mere 12,000 jobs. However, many analysts are dismissing the report because collecting data may have been impacted by hurricanes Helene and Milton, as well as the Boeing strike.

“Like much of the housing market at the moment, home prices remained relatively flat coming into the fall,” said CoreLogic Chief Economist Selma Hepp. “Despite some improved affordability from lower mortgage rates during August, homebuyers mostly kept on the sidelines and decided to wait out the mortgage rate drop for a potentially better opportunity next year, when the current volatility, uncertainty surrounding the election’s outcome, and the impact on longer-term rates may be slightly clearer.”

Some of the main takeaways from the report included CoreLogic’s forecast that shows annual U.S. home price gains will be 2.3% in 2025. Miami posted the highest year-over-year home price increase (6.8%) among the country’s 10 highlighted metro areas in September, while Chicago had the second highest (6.7%).

Rhode Island had the highest annual price appreciation at up to 9%, followed by New Jersey (up to 8.6%). Hawaii was the only state to record a year-over-year home price loss (-0.4%).