With new home prices falling and median existing home prices rising in August (while average existing home prices rise, signaling 'expensive' homes are selling), this morning's (admittedly lagged and smoothed) Case-Shiller home price data was expected to decline (for July)... and it did, but ony marginally.

Home prices across the top 20 cities in the US fell by 0.07% MoM (less than the 0.2% decline expected) - the fifth straight monthly drop in prices. This pulled the YoY price appreciation down to 1.82%, the lowest since July 2023...

Source: Bloomberg

The US is coming off its weakest spring selling season in 13 years after high prices and mortgage rates sidelined many would-be buyers.

"July's results reinforce that the housing market has downshifted to a much slower gear," said Nicholas Godec, Head of Fixed Income Tradables & Commodities at S&P Dow Jones
Indices.