According to the last FHFA Home Price Index report for May 2016, price appreciation slipped to a rate of 5.6 percent. While still high, it still means home prices appreciated at a rate in May that was 30 basis points lower than April.
May’s HPI, which looks at home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac, ended with a value of 234.3—up from 233.8 in April, according to FHFA. Over-the-month, home prices actually increased by 0.2 percent from April to May.
Existing-home sales increased by 1.1 percent in June up to an annual rate of 5.57 million and have increased for four straight months; however, NAR Chief Economist Lawrence Yun wonders if they can keep up the pace.
“Looking ahead, it's unclear if this current sales pace can further accelerate as record high stock prices, near-record low mortgage rates and solid job gains face off against a dearth of homes available for sale and lofty home prices that keep advancing,” Yun said.
The last FHFA Home Price Index for June will be released on Wednesday, August 24, 2016.
New Home Sales—HUD/Census Bureau, Tuesday, August 23, 10 a.m. EST
The HUD/Census Bureau report on new home sales for July will be released on Tuesday, August 23. Like existing-home sales, new home sales hit their highest point in June since the last decade.
New home sales were up to a seasonally adjusted annual rate of 592,000 in June, which was 3.5 percent higher than in May and 25.4 percent higher than June 2015’s rate—the highest rate since February 2008.
“This is a continued sign that demand for homes remains solid and aptly reflects increasing homebuilder confidence,” McLaughlin said. “The share of all home sales composed of new homes ticked upward to 10.6 percent in June, as new home sales continue to slowly ease the crunch of low existing inventory.”
This Week's Schedule
Tuesday, August 23
New Home Sales for July 2016, HUD/Census Bureau, 10 a.m. EST
Wednesday, August 24
House Prince Index (HPI) for June 2016, Federal Housing Finance Agency, 9 a.m. EST
Existing-Home Sales for July 2016, National Association of Realtors, 10 a.m. EST
Friday, August 26
GDP, 2nd Estimate for Q2, Bureau of Economic Analysis, 8:30 a.m EST
Consumer Sentiment for August 2016, University of Michigan Consumer Survey Center, 10 a.m. EST