FHFA House Price Index Softest Since August

The FHFA house price index failed to show much lift in February, up 0.4 percent which hits the Econoday consensus but is still the softest gain since August. The year-on-year rate, which has been trying to hold at the 6.0 percent rate, fell back sharply to plus 5.6 percent.

The housing market has been chilly this year, occasionally showing signs of strength but, like Tuesday's starts & permits report, more times than not moving backwards. Home price appreciation, during a time of weak wage growth, is central to household wealth and today's report will not be raising expectations for a rebound in consumer spending. Watch for Case-Shiller price data next week.

Recent History Of This Indicator:
FHFA house price index rose a solid 0.5 percent in January and a 0.4 percent rise is expected for February's report. The year-on-year rate has been holding at or near the 6.0 percent line over the last year, not spectacular but still solid for a low inflation economy.