US Home Prices Rose For 15th Straight Month In May, Despite Soaring Rates

Home prices in America’s 20 largest cities rose for the 15th straight month in May (the latest data point from Case-Shiller’s admittedly lagging series), up a better than expected 0.34% MoM to +6.81% YoY…

Source: Bloomberg

Given the smoothing and heavy lag in the Case-Shiller data, it’s hard to find a causal relationship between prices and mortgage rates, but with rates remaining above 7%, it seems hard to believe prices can continue their advance…

Source: Bloomberg

…but home prices are still tightly correlated with Fed Reserves which have slowed down…

Source: Bloomberg

…and a peak in the rate of price growth appears clear across all metros…

How is Powell going to cut rates when home prices are still rising near 7% per year?