Reuters logo
U.S. home prices rise faster than expected in January
March 28, 2017 / 1:07 PM / 6 months ago

U.S. home prices rise faster than expected in January

NEW YORK, March 28 (Reuters) - U.S. single-family home prices accelerated at a faster pace than expected in January supported by a low inventory of housing stock, a survey showed on Tuesday.

The S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas rose 5.7 percent in January on a year-over-year basis, from a downwardly revised 5.5 percent increase in December. January’s result topped the estimate of a 5.6 percent increase from a Reuters poll of economists and was the biggest year-on-year increase since July 2014.

David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said recent rate increases by the U.S. Federal Reserve are not lifting mortgage rates dramatically and so should not present a significant headwind to further price gains. The Fed raised rates a quarter percentage point at two of its last three meetings, most recently earlier in March.

If the pace of Fed increases accelerates, however, “rising mortgage rates could become a concern,” he said.

On a monthly basis, prices in the 20 cities rose 0.9 percent in January on a seasonally adjusted basis, the survey showed, outpacing expectations for a 0.7 percent increase.

On a non-seasonally adjusted basis, prices increased 0.2 percent from December. (Reporting by Dan Burns; Editing by Chizu Nomiyama)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below