FHFA: Home prices keep moving up
Best year-on-year rate in years
U.S. housing prices in January gained 0.5% on a seasonally adjusted basis from the previous month, according to the Federal Housing Finance Agency.
The previous report for December was at 0.4%.
According to the FHFA report, from January 2015 to January 2016, house prices were high 4.9%. U.S. housing prices in November rose on a 0.5% seasonally adjusted basis from the previous month.
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The FHFA house price index rose 0.4% in the prior report but year-to-year gain returned to 6.0%.
The year-on-year rate is back at the 6.0% line for one of the best readings of the last couple of years.
As a result of weak wage growth, home-price appreciation is more important than ever for household wealth. Not many homeowners will see a significant appreciation.
Nevertheless, the Econoday consensus is calling for a sizable 0.6% monthly gain in the January report.
January’s new home sales report is expected to show both sales and prices to be weak.