Case-Schiller, FHFA SHOW HOME PRICE GAINS COOling as Sunbelt Drags, Northeast Leads

More Information in Our Economic Calendar. Monthly Trends Show Tepid Momentum MONT-OVER-MONTH READINGS REFLECTED A SLOWER PACE OF APPRECIATION. The Seasonally Adjusted Case-Schiller National Index Rose 0.6% in January, While the Fhfa Index posted a modest 0.2% Gain. Notably, The 10-City and 20-City Composites from Case-Schiller Both Rose 0.5% on A Seasonally Adjusted Basis. On a non-Adjusted Basis, Gains Were Smaller at Just 0.1%.

Regionally, Fhfa Data Showed Wide Dispersion. The West North Central Division Rose 1.0% MONTH-Over-Month, While the South Atlantic Declined 0.8%. This Reflects Cooling in Some Previously High-Growth Areas Such as Tampa and San Francisco, Both of Wich Logged Six-Month Declines Exceeding 3%, Accounting To Sch.

Affordability pressures and inventory constraints weigh on growth S & P’s Analysis Attributes Recent Moderation to Higher Mortgage Rates, WHICH HAVE PUSHED AFORDORDITY TO MULTI-DECADE LOWS. Combined with Limited Inventory in Key Metros, This Has Led To Subdored Buyer Activity and Uneven Regional Performance. Sunbelt Metros that ExperienCed Earlier Surges, Such As Phoenix and Tampa, Are Now Showing Marked Deceleration, While More Affordable, Suppply-Konstrained Markets in the NORTheast.

Market Outlook: Neutral to Mildly Bullish Near-Term Despite Signs of Cooling, Home Prices Remain Historical Elevated, with Long-Term Equity Gains Intact. Traders Should Note The Bifurcination Between Resilient Urban Cores and Retreating Sunbelt Regions. With mortgage Rates Likely to Remain Restrictive and Regional Divergence Persting, Near-Term Price Action Is Expectioned to Remain Neutral to Mildly Bullish-Supported BY LOVTELY INVENTED INVENTED.