US House Prices Rise in August

U.S. single-family home prices rose in August at a slightly faster pace than in July and in line with expectations, a closely watched survey said on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 5.1 percent in August on a year-over-year basis compared with 4.9 percent in July and was in line with estimates for 5.1 from a Reuters poll of economists.

“A notable part of today’s economy is the continuing low inflation rate; in the year to September, consumer prices were unchanged,” David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices, said in a release.

“One result is that a 5 percent price increase in the value of a house means more today than it did in 2005-2006, the peak of the housing boom when the inflation rate was higher. The rebound from the recent lows was faster than the 1997-2005 housing boom, and also much less driven by inflation.”

via Reuters

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 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