U.S Housing August Prices Soften

According to the FHFA, house prices slipped 0.1 percent in August after edging up 0.1 percent the prior month (originally up 0.8 percent). The August dip ended a string of four monthly gains in a row. Analysts had forecast a 0.3 percent rise for August. The FHFA house price index covers mortgages financed by or bundled by federal housing agencies.

On a year-on-year basis, the FHFA HPI is down 4.0 percent, compared to down 4.1 percent in July.

Six of the nine Census Divisions declined in August; two were flat; and only one gained. For the nine Census Divisions, seasonally adjusted monthly price changes for month-ago August ranged from minus 1.3 percent in the West North Central Division to plus 0.9 percent in the South Atlantic Division.

Today's report and the Case-Shiller report earlier this morning show house prices stabilizing at best or even marginally softening. Soft demand and still high supply continue to constrain prices.

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