House Price Indexes Show Promise

 

Both indexes have been reporting modest rises recently. This data points to a continued slow economic recovery.
Courtesy of MonitorBankRates.com

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The Federal Housing Finance Agency House Price Index doesn’t always get much attention because it only covers single-family homes backed by mortgages guaranteed by Fannie Mae and Freddie Mac. Its competitor, the Case-Shiller index, covers a larger market (including subprime mortgages), and therefore is given more market attention.

“Monthly FHFA data show prices rising May, June and July, putting the three-month annualized rate at plus 4.5 percent. That’s the strongest performance on this basis since early 2006,” noted Ian Shepherdson from High Frequency Economics. He added that with 30-year mortgage rates around 5 percent, home sales could rise considerably in the near-term.

– Courtesy of Mortgage News Daily