OFHEO reports that home prices rose a tiny +.1% QoQ in the second quarter, versus the first quarter of 2007, based on their data. Consensus was for an increase of +.3% QoQ. The change from the second quarter of 2006 still shows an increase of +3.2% YoY. The annual change reached a peak in the second quarter of 2005 at 13.6% YoY.
When looking at purchase only data, the increase was only +2.6% YoY vs +3.2% YoY when refis are also included.
House price appreciate remains strongest in the West and weakest in New England. Florida and California had the majority of the cities with house price declines.
The OFHEO House Price Index focuses on data from repeat sales and refinances of conforming mortgages that can be sold to Fannie and Freddie, which means they only cover loans of less than $417k in value, and exclude jumbo and private label mortgages. For this reason, many economists now prefer the data available in the quarterly S&P Case/Schiller national home price index which is produced quarterly and was released earlier this week showing a national decline in housing prices of -3.2% YoY in the second quarter.
It is important to remember that this data only runs through June, and doesn't include the impacts from the most recent credit tightening in the mortgage markets.
Thursday, August 30, 2007
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