On Tuesday, S&P will release the latest data on home prices in May through the S&P CoreLogic Case-Shiller Home Price Index (HPI). The data will determine if home price growth continued to moderate during the month.
The data for April indicated that year-over-year home prices had grown 3.5%. The 10-City Composite Index, which is a part of the HPI, indicated an annual increase of 2.3%.
Las Vegas, Phoenix, and Tampa reported the highest year-over-year gains among the top 20 cities tracked by the index. The April data also indicated that nine of the 20 cities reported greater price increases in the year ending April 2019 versus the year ending March 2019.
"Year-over-year price gains remain positive in most cities, though at diminishing rates of change," said Philip Murphy, Managing Director and Global Head of Index Governance at S&P Dow Jones Indices. "Seattle is a notable exception, where the year-over-year change has decreased from 13.1% in April 2018 to 0% in April 2019."
The decrease in mortgage rates was one of the reasons cited by Murphy for the overall moderation in home prices.
"Peak year-over-year changes in the 20-City Composite coincided with the upward turn in mortgage rates during the first quarter of 2018," Murphy observed. "In 2019, mortgage rates reversed course again and the 30-year fixed mortgage rate is again under 4%, yet the year-over-year house price moderation that coincided with the 2018 uptick in rates has not changed course."
The S&P CoreLogic Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate both nationally as well as in 20 metropolitan regions.
Here's what else is in store in the week ahead:
- NAR Pending Home Sales Index, Tuesday, 10 a.m. EST
- MBA Mortgage Apps - Wednesday, 7 a.m. EST
- Fed Chair Press Conference, Wednesday, 2:30 p.m. EST
- Freddie Mac Primary Mortgage Market Index, Thursday, 10 a.m. EST
- Census Bureau Construction Spending Report, Thursday, 10 a.m. EST
- Bureau of Labor Employment Data, Friday, 8:30 a.m. EST