S&P Dow Jones Indices reported that the Case-Shiller (CS) National Home Price Index slowed to a 6.4% seasonally adjusted annual growth rate in January, from 8.8% in December. The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 6.7% in January, following 5.7% in December.
Surging sales of existing homes as buyers rushed to stay ahead of a much anticipated increase in interest rates put upward pressure on house prices in late 2015. The decline in sales in January was accompanied by a deceleration in house price gains. Going forward house prices are expected to continue rising steadily but at a slower pace than in recent months.
Following the tumultuous boom and bust in house prices the increases of recent months have brought house prices more in line with long term trend levels.