Year-over-year home prices are up 11.2%, some cities even more. The Fed does not see this or count it if they do. Let's discuss why.

Home Prices Rise at Fastest Pace in 15 Years

Home prices are running rampant. The national level average year-over-year increase is 11.2%.

Prices have accelerated in the past few months. I discussed the year-over-year acceleration in Home Prices Rise at Fastest Pace in 15 Years

National and 10-city averages do not tell the full story as the lead chart shows. 

Inflation Disconnect

Owners' Equivalent Rent

OER stands for Owners' Equivalent Rent.