The FHFA House Price Index for May rose only narrowly, up 0.1% from April, seasonally adjusted, a meager increase and the smallest month-over-month gain since up 0.1% in January 2015. However, the unadjusted index was up 0.8%, suggesting that prices haven’t lost much upward momentum and hombuyers are paying more for a home and willing to do so while mortgage interest rates have helped affordability.
Compared to a year-ago, the unadjusted index was up 5.0%, the smallest year-over-year rise since 4.7% in January 2015. The underlying trend for home prices has cooled significantly since the peaks seen in the past two years and buyers may have more power to negotiate price at the moment.
Disclaimer: Whetstone Analysis provides commentary as a service to its subscribers. Whetstone Analysis is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated and every effort is made to ensure its accuracy, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date. Click here to read our full Disclaimer.