The seasonally adjusted S&P CoreLogic Case-Shiller Home Price Index for November was up 0.4% from October, the same month-over-month percent change as registered in October and September. The increase was more or less in line with the trend for most of 2018 as home prices continued to rise modestly. The story was similar to that told by the FHFA House Price Index when it was released on Wednesday, January 23.
However, the year-over-year increase for the unadjusted index slowed to up 5.2%, its lowest reading since up 5.2% in November 2016. This suggested that although home prices are still increasing, the underlying trend has moderated. This may be good news for potential home buyers in the form of more affordable purchases with a downtick in mortgage interest rates in December and January. Still, activity in the housing market may have settled down from the post-recession peaks of the past two years. Activity is likely to remain tepid and aligned with modest-to-moderate economic growth.
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