FHFA Home Price Appreciation Index Picks Up

Home prices, which had sagged going into year-end, picked up in January based on FHFA's index which rose 0.5 percent in the month. The year-on-year rate is back at the 6.0 percent line for one of the best readings of the last couple of years. Given weakness in wage growth, home-price appreciation is more important than ever for household wealth. Watch tomorrow for the new home sales report where both sales and prices have been weak.

Recent History Of This Indicator
FHFA house price index did rise a monthly 0.4 percent in the prior report but year-on-year gain moved back from 6.0 percent. Fewer homeowners expect to see significant appreciation this year which, given weakness in wages, is a negative for the economy. The Econoday consensus, however, is calling for a sizable 0.6 percent monthly gain in the January report.