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.