A 'potentially significant market shift' is taking over housing
The FHFA on Wednesday released its monthly house price index for June, and a report on the second quarter.
In every month during Q2, prices rose 0.2%, "a much more modest pace of appreciation than we've seen in some time" which reflects pressures from falling home affordability, according to Andrew Leventis, FHFA supervisory economist.
As housing demand failed to keep up with shrinking inventory, home prices rose.
"Although the appreciation rate for the second quarter was of similar magnitude to what we've been seeing for several years now, a close look at the month-over-month price changes during the quarter reveals a potentially significant market shift," Leventis said.
The June index of 0.2% was below economists' forecast for 0.3%.
The FHFA's quarterly report showed that house prices rose 1.2% in the second quarter, and gained 5.6% compared to the same period a year ago.
During Q2, home prices rose in every state except Vermont. The biggest quarter-on-quarter gains were seen in Oregon, Washington, Colorado, and Florida.
The economic calendar this week is full of housing data. On Tuesday, the Census Bureau said new home sales rose in July to a seven-year high.
More to come ...