Home Prices Remain Firm

Home prices remain very firm, up a higher-than-expected 0.7 percent in August vs an upward revised 0.4 percent gain in July. The year-on-year rate is up 1 tenth and back near a 4-year high at 6.6 percent. The Pacific, at a yearly 9.3 percent gain, has moved out in front of the Mountain region at 8.3 percent. The Mid-Atlantic is in the rear as it often is, up however a still solid 5.0 percent.

FHFA prices have been holding over the 6 percent appreciation line all year with Case-Shiller data just below. Today's report will raise estimates for next week's Case-Shiller report.

Recent History Of This Indicator:
Appreciation in home prices has been perhaps this year's best economic story, running at roughly a 6 percent annual rate and giving an important lift to household wealth. Yet appreciation has been slowing in recent months in line with weakness in home sales. The FHFA house price index managed only a 0.2 percent monthly gain in July with the rate expected to rise to 0.4 percent in August.