US Home Prices Reach New Record High in June

Continuous Rise in Home Prices

According to the most recent data from S&P CoreLogic - Case Shiller, home prices in the 20 largest cities in the United States have been on an upward trend for the 16th consecutive month in June. The increase for the month was 0.42%, which was higher than expected and showed acceleration from May. On a year-over-year basis, the rise was 6.47%. However, it's worth noting that this is the third consecutive monthly slowdown in the rate of price appreciation.

US Home Prices Reach New Heights

Despite the slowdown in the rate of appreciation, US home prices reached a new record high in June. This is while the median new home prices remained relatively stable.

Home Prices and the Federal Reserve

Home prices have been closely following the Federal Reserve's actions. However, a turning point might be on the horizon. It's challenging to establish a direct cause-and-effect relationship between home prices and mortgage rates due to the lag and smoothing in the Case-Shiller data.

Reacceleration of Prices and Mortgage Rates

With home prices reaccelerating and mortgage rates already dipping below 7.00% in anticipation of the Federal Reserve's actions, it raises questions about the potential impact when the Federal Reserve begins to cut rates with home prices at record highs.

Bottom Line

As the US home prices reach new record highs, it's crucial to consider the potential implications this could have on the economy, particularly in relation to the Federal Reserve's actions and mortgage rates. What are your thoughts on this upward trend in home prices? How do you think it will impact the economy in the long run? Feel free to share this article with your friends to get their insights as well. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.