Home prices in the U.S. hit another record high in September, though prices didn't accelerate as much as in previous months, as high mortgage rates continued to drag on the housing market.

The national S&P Case-Shiller Home Price Index rose 3.9% over 12 months in September, down from a 4.3% increase in August, Dow Jones Indices said Tuesday. The uptick took the index to a fresh record high, although the annual price increases have been getting shallower in recent months. Annual price gains have decelerated every month since February when prices rose 6.5% year-over-year.

Rapid increases in home prices since the pandemic, combined with high mortgage rates for the past few years, have pushed monthly mortgage payments out of reach for many buyers and stifled home sales.

"Sales prices of existing homes falling is a bit of good news for buyers, and while 2024 will go down as one of the worst years for sales, maybe we’re finally seeing a sustained deceleration in price increases," Robert Frick, corporate economist at Navy Federal Credit Union, wrote in a commentary.