FHFA Home Price Reading Moving Higher

FHFA price data, in contrast to other home price readings, are moving sharply higher, up 0.7 percent in August on top of July's already strong 0.5 percent. Year-on-year, FHFA data surged to plus 6.4 percent from an upward revised 5.9 percent in July. The monthly gain for August is the highest since 0.8 percent in September last year with the year-on-year rate the highest since 6.9 percent in February 2014.

Eight of nine census divisions posted monthly gains in August ranging from plus 1.1 percent in the East North Central with the West North Central at the bottom at no change. Year-on-year, the Pacific region is out in front at plus 7.9 percent with the Middle Atlantic in the rear at 3.3 percent.

Gains in FHFA's data, which track conforming conventional mortgages purchased by Fannie Mae or Freddie Mac where $417,000 is the limit, are pointing to a pivot upward for the central bulk of the nation's real estate market.

Recent History Of This Indicator:
Appreciation in home prices has been moderate this year, trending in the 5 percent range for most readings which however is more than respectable when inflation is low and wage growth limited. The FHFA house price index has been at the top of list, rising a monthly 0.5 percent in the last report for July and pushing the 6 percent line at plus 5.8 percent for the year-on-year rate. Forecasters see the monthly rate for August holding steady and solid at plus 0.5 percent.