Excerpt:
The recent increase in mortgage rates to near 7% will not impact the Case-Shiller index until reports are released in the Fall.
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Here is a comparison of year-over-year change in median house prices from the NAR and the year-over-year change in the Case-Shiller index. Median prices are distorted by the mix and repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices. However, in general, the Case-Shiller index follows the median price.
The median price was down 0.9% year-over-year in June, and, as expected, the Case-Shiller National Index was down 0.5% year-over-year in the May report.
Note: I’ll have more on real prices, price-to-rent and affordability later this week.
Seasonally adjusted house prices have increased over the last four months, and the big question is “Will house prices decline further later this year?”
