FHFA House Price Index Shows Moderation

Moderation is the theme for home prices, both for yesterday's Case-Shiller report and also for today's FHFA house price index which managed a moderate but still solid monthly gain of 0.3 percent for a 5.7 percent year-on-year rate, however, that is a 2-1/2 year low.

By region, home prices in the Mountain states are the strongest at a nearly double-digit yearly gain with prices the weakest in New England, the Mid-Atlantic, and the West South Central where appreciation is in the low mid-single digits.

This year has been a strong one for the labor market and for consumer spending but not for housing where, due at least in part to higher mortgage rates, sales have slumped and prices have been coming down.