FHFA: Home Prices Continue to Increase

According to the FHFA report, from January 2015 to January 2016, house prices were 4.9% higher . U.S. housing prices in November rose on a 0.5% seasonally adjusted basis from the previous month.

The FHFA house price index rose 0.4% in the prior report but year-to-year gain returned to 6.0%.

The year-on-year rate is back at the 6.0% line for one of the best readings of the last couple of years.

As a result of weak wage growth, home-price appreciation is more important than ever for household wealth. Not many homeowners will see a significant appreciation.

Nevertheless, the Econoday consensus is calling for a sizable 0.6% monthly gain in the January report.

January’s new home sales report is expected to show both sales and prices to be weak.