FHFA House Price Index Edges Slightly Higher

The number of homes on the market may be low but price indications are slowing. The FHFA house price index edged only 0.1 percent higher in data for April which follows an upward revised but nearly as soft 0.2 percent increase in March (the two months together mark a clear slowdown that is visible in the graphs below, at 0.15 percent in April and 0.19 percent in March going out to two decimals). The year-on-year rate, which peaked at 7.4 percent early in the year, is down to 6.4 percent in today's report.

Despite the slowing, indications still hint at possible bubbles in the Mountain region, up 0.4 percent in the month for an 8.9 percent year-on-year rate, though the Pacific region did ease with only a 0.1 percent gain and an 8.3 percent on-year rate. The West South Central is bringing up the rear, down 0.5 percent in the month for a still respectable 4.6 percent yearly rate.

Similar indications of price slowing have been coming from the new home and existing home reports as did the March results for Case-Shiller. The results do raise the question whether housing demand may be slowing. April results for Case-Shiller will be posted next week.