Home Prices Continue To Slow, Miss Expectations

Home prices continue to slow to underscore what is becoming another difficult year for the housing sector. Case-Shiller's adjusted 20-city index rose only 0.1 percent in May to miss Econoday's consensus range though the year-on-year at 2.4 percent did hit expectations. Yet the 2.4 percent showing is the lowest rate of home-price appreciation in seven years and confirms a similar slump in the FHFA's house price index which is also at multi-year lows. Despite low mortgage rates and consumer strength, housing data whether for prices or sales or construction have been flattening out in recent reports in what will support arguments to cut interest rates at this week's FOMC meeting.