The Case-Shiller Home Price Index, widely regarded as the gold standard for measuring home appreciation, reported a 0.5% increase in home prices for December, with a 3.9% rise year over year.
Meanwhile, the Federal Housing Finance Agency (FHFA) released its House Price Index, which excludes cash buyers and jumbo loans, focusing instead on single-family homes with conforming loan amounts. According to this report, home prices have increased by 4.7%, reflecting continued market strength. A 4% appreciation is a solid indicator of a healthy housing market.
On the mortgage front, Bond prices have risen significantly over the past week, leading to lower yields and, in turn, lower mortgage rates. We’re hopeful this trend continues, especially with the upcoming PCE report on Friday, which could have a major impact on rate movements.
Lower rates ahead? Let’s stay tuned.
On the Chart, up ie Green is lower rates.
Mortgage News 