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Thursday, September 22, 2016

FHFA Home Prices Begin To Firm

Home prices have been soft but they may have begun to firm back in July, based on the FHFA house price index which rose a solid 0.5 percent with June revised 1 tenth higher to a 0.3 percent gain. Year-on-year appreciation had been backing off the 6 percent line but, at least for this index, is making another attempt, up 1 tenth to 5.8 percent from July's revised 5.7 percent rate. All nine census divisions posted monthly gains from 0.2 percent in the struggling Mid-Atlantic housing sector to 1.0 percent in the East South Central. The year-on-year rate for the Pacific region, where talk is heard of a possible bubble, is at 7.7 percent. Today's report will raise expectations for a bounce back in next week's Case-Shiller data.

Recent History Of This Indicator:
Home sales have been on the rise and appear to be getting a boost from price discounting. The FHFA house price index posted gains of only 0.2 percent in both July and June for the weakest showings of the economic cycle. The year-on-year rate, which had been at 6.0 and 6.3 percent in April and March, has come in at 5.6 percent the last two reports.

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