The May FHFA home price index rose .9% from April and is better than the expected decline of .2%. The y/o/y decline is 5.6%. From its record high in April 2007, prices are down 10.7%. This data measures only those single family homes that have mortgages backed by FNM and FRE and covers every region of the country. The S&P/Case-Shiller in contrast includes condo’s, jumbo loans and focuses on the 20 big cities. If there is a question on which index is more relevant to the markets, the US Treasury answered it when they used the Case-Shiller as a benchmark indicator in their stress tests of 19 large banks. The banking sector and every home owner should be so lucky to have home prices down just 10.7% from its highs.
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