Housing prices in 20 US cities accelerated in July, spurred by housing demand driven by low mortgage interest rates.

The S&P CoreLogic Case-Shiller housing price index rose 3.9% from 2019, higher than economists' estimate of 3.6%. This is the biggest year-over-year increase since December 2018.

The housing market has always been an unexpectedly bright spot in the US economy, and Americans are eager to take advantage of record low mortgage interest rates.

Inventory shortages have also helped drive up housing prices, particularly as Americans seek more space to evacuate.

Danielle Hale, chief economist at Realtor.com, said, “As buyer demand shows no sign of slowing down and inventory is limited, further increases in housing prices seem inevitable.”