The Federal Housing Finance Agency house price index rose 0.2% in June, below the low-end forecast for 0.3% but still a respectable gain. Annualized price growth was 5.6%, while prices in the second quarter rose 5.4% compared to the second quarter of 2014. Sales rates are tracking at roughly double the pace of price growth, a mismatch that points ahead to price acceleration given how thin inventories are right now in the housing sector.
The FHFA’s index is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. This report has been showing slightly more strength than S&P/Case-Shiller indices, where year-on-year price appreciation is at 5% by the FHFA’s reckoning.
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