Home Prices Rose Less Than Expected in May

The Case-Shiller Home Price report for May was just released this morning and shows that, in May, home prices rose less than experts had predicted. The 20-City Index recorded a very slight rise of 0.04% against an expected rise of 0.3%. On a year-over-year basis, the 20-City Index stands at a 3.69% growth rate versus the forecast of 4.0%. Still pretty good, just not as good as previously thought. Nationally, the U.S. House Price Index notched a 4.46% year-over-year pace and that was down from April’s 4.61% twelve month growth rate.

The news will likely have little impact on markets as virus concerns, relations with China, civil unrest, and the FOMC’s meeting have garnered most of investors’ attention along with what might, or might not, be in the next relief package. Equity markets will likely start the day a little off while Treasuries enjoy a modest rally. The Ten-Year’s quarter-point gain has pushed the yield down to around 0.58% while the long bond sits just below 1.25%. Gold is still pretty shiny at around an unchanged $1,940 while crude oil is pretty steady at around $41.37. The Fed’s meeting begins today and the Conference Board’s Consumer Confidence report will be released a little later this morning.