Home prices in America's 20 largest cities rose for the 15th straight month in May (the latest data point from Case-Shiller's admittedly lagging series), up a better than expected 0.34% MoM to +6.81% YoY...

Given the smoothing and heavy lag in the Case-Shiller data, it's hard to find a causal relationship between prices and mortgage rates, but with rates remaining above 7%, it seems hard to believe prices can continue their advance...

...but home prices are still tightly correlated with Fed Reserves which have slowed down...

...and a peak in the rate of price growth appears clear across all metros...

How is Powell going to cut rates when home prices are still rising near 7% per year?

...but the pace of price appreciation appears to be slowing...
{ai:summary}In a city where reality blurs like a foggy alley, home prices in the top twenty metropolises of America keep climbing, rising for the fifteenth month straight. Buyers and sellers are trapped in a tango as mortgage rates linger above 7%, stifling the pulse of the market.Meanwhile, the Federal Reserve watches like a hawk, struggling to cut rates while prices swell near 7% annually. The chase for a stable economic rhythm is on, but the dance floor is slick with uncertainty. #economy

US Home Prices Rose For 15th Straight Month In May, Despite Soaring Rates

Loading...