US Home Prices Rise in August To 7 Year High

U.S. single-family home prices rose in August and also posted their strongest annual gain in more than seven years, a closely watched survey showed on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas rose 0.9 percent on a seasonally adjusted basis, beating economists’ expectation of a 0.6 percent gain. Prices rose 0.6 percent in July.

On a non-adjusted basis, prices rose 1.3 percent.

Compared to a year earlier, prices were up 12.8 percent, beating economists’ expectations of 12.5 percent and marking the strongest gain since February 2006, when the increase was 13.8 percent.

The August price gains came despite a rise that month in 30-year mortgage rates that slowed mortgage applications and refinancing activity.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza