Today brings the release of June’s home price indices from both the FHFA (the regulator that oversees Fannie and Freddie, the entities that guarantee a majority of mortgages in the U.S.) and S&P Case Shiller.  These are the two most widely followed measures of home prices and FHFA’s data is particularly important as it determines changes in the conforming loan limit. Both indices decelerated in June, but both remain historically high in year-over-year terms. For those curious as to how the recent surge in prices stacks up with the housing boom that preceded the mortgage meltdown and financial crisis, here you go: Year-over-year numbers certainly don’t tell the story of the recent shift in prices.  The following chart shows the month-over-month changes, with the most recent update for June dropping to 0.1% (versus 1.3% in May) for FHFA and 0.4% (versus 1.2% in May) for Case Shiller. Again, this is for the month of JUNE, and there have been another 2 months of housing market activity since then.  Other, more timely home price metrics suggest the trend continued, with the following comments from Black Knight being particularly interesting: “The median home price fell by 0.77% in July, the largest single-month drop since January 2011. On a seasonally adjusted basis, July’s dip ranked among the 10 largest monthly declines on record, dating back more than 30 years.” -Black Knight
Source: Mortgage News Daily