Home prices rise for 6th straight month
Posted September 25, 2012
On Tuesday, July’s S&P Case-Shiller Home Price Index was released, and the report delivered some continued good news for housing across the nation.
Home prices have now risen for the sixth consecutive month, coming in up 0.4 percent for the month. Expectations from economists were a bit higher, but the markets embraced the increase, as hopes of a more confident public emerge now that we’re seeing a sustained trend in improving home prices across the nation.
The Federal Housing Finance Agency (FHFA) also released its Home Price Index on Tuesday, and that figure gave us a 0.2 percent increase in its delivered metric. This index is based on homes in the GSE pool (Fannie Mae and Freddie Mac).
According to the Conference Board, its Consumer Confidence Index jumped in September, rising to a reading of 70.6 from 61.3 in August. The index improvement was driven by increased optimism regarding income and employment options.
Mortgage rates continue their confident march down the housing boulevard, in part due to QE3, and in part thanks to help from the European markets, which are once again becoming a tail-wind for US Treasuries and Mortgage Rates. Mortgage-backed securities have seen recent improvements, and the 10-Year Yield is now trading at 1.67 percent.