Home Price Appreciation Slows

Home-price appreciation slowed in August, to plus 0.3 percent for FHFA's house price index which is just below the low end of the Econoday consensus and down from a revised 0.5 percent gain in July. Year-on-year appreciation, which had been edging up toward 6 percent in this report, moved down to 5.5 percent.

All regions show year-on-year gains, ranging from plus 2.2 percent for the Mid-Atlantic to plus 8.3 percent for the Mountain region. The monthly reading for August ranges from minus 0.4 percent for the East North Central to plus 0.8 percent for the East South Central.

This report is a surprise given signs of firmness in the housing sector and is now falling more in line with Case-Shiller data where appreciation has been more modest.

Recent History Of This Indicator:
House prices have been on the climb, boosted by limited homes on the market and a lower share of distressed homes. The FHFA house price index, after jumping 0.6 percent in the prior report, is expected to post another very solid gain of 0.5 percent in data for August. Year-on-year, price growth in this report is approaching 6.0 percent.