* CoreLogic HPI Continues to Beat Forecast. The second of the major home price estimates for April was released by CoreLogic on Tuesday and tracks, on an annual basis, closely with the first, released by the National Association of Realtors last month. The CoreLogic Home Price Index (HPI) shows that the price of a home sold in April was up 1.8% from March and rose 6.2% compared with the index in April 2015. NAR’s report on April existing home sales put the April year-over-year gain at 6.3%. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state. The two Pacific Northwest states were the only ones to post double digit increases. Washington’s HPI rose 10.6% year-over-year while Oregon’s was up 10.3%.
Full Story… http://www.mortgagenewsdaily.com/06072016_corelogic_hpi.asp
* Rate Hike Coming When Inflation Goes Up. Although the May jobs showed a shockingly low number of jobs added, it is the inflation rate that is keeping the Fed from rising interest rates, Janet Yellen, chair of the Board of Governors of the Federal Reserve System, said Monday. Whereas the jobs report on Friday was disappointing, the overall labor market situation has been positive, Yellen said. “We agree with Yellen that other labor market indicators, such as initial jobless claims, the job openings rate and the voluntary quits rate, suggest that labor market conditions remain robust,” said Capital Economics Chief Economist Paul Ashworth. “My overall assessment is that the current stance of monetary policy is generally appropriate, in that it is providing support to the economy by encouraging further labor market improvement that will help return inflation to 2%,” Yellen said. “At the same time, I continue to think that the federal funds rate will probably need to rise gradually over time to ensure price stability and maximum sustainable employment in the longer run,” she said.
Full Story… http://www.housingwire.com/articles/37201-yellen-rate-hike-coming-when-inflation-goes-up?eid=322520585&bid=1424649
* U.S. Housing Market Moving Deeper Into Buy Territory. The latest national index produced by Florida Atlantic University and Florida International University faculty indicates the U.S. housing market as a whole is moving deeper into buy territory, suggesting that, on average, residential housing markets around the country are sound. In terms of wealth creation, the U.S. housing market has swung marginally more in favor of home ownership over renting a comparable property and investing monthly rent savings in a portfolio of stocks and bonds. Overall, 16 of the 23 metropolitan markets investigated moved in the direction of buy territory. “This appears to be driven by a steady but strengthening job market, rising rents relative to rising ownership costs and recent slower growth in traditional financial portfolios consisting of stocks and bonds,” said Ken Johnson. Cities such as Honolulu, Kansas City, Los Angeles, Miami, Pittsburgh, Portland, San Diego, San Francisco and Seattle are hovering around what the index’s authors refer to as the “indifference point” between buying versus renting. In almost all of these metro markets, the BH&J Index score for the quarter moved in the direction of ownership.
Full Story… http://www.fau.edu/newsdesk/articles/housing-market-moving-deeper-into-buy-territory.php