While US home sales have been fading notably in recent months, home prices have been doing the opposite and after four straight months of deceleration, December and now January have seen Case-Shiller home prices re-accelerate (up 19.10% YoY)...
For the 20-City Composite, home prices rose 1.79% MoM, well above the 1.5% MoM rise in December and the biggest MoM rise since 2013.
Phoenix, Tampa and Miami reported the biggest year-over-year gains.
The question is - given the smoothing and delays in Case-Shiller's data series - what happens next? Maybe mortgage rates provide some ideas...
We will see what happens next... and how quickly Washington starts bleating at The Fed rate-hikes if home prices start decelerating this fast.