This week S&P/Case-Shiller released their monthly Home Price Indices for February which showed that home prices increased 5.3%, year-over-year (virtually unchanged from last month). In addition, their 10-City Composite is up slightly at 4.6% for the year and their 20-City Composite’s year-over-year gain is 5.4%.
”Home prices continue to rise twice as fast as inflation, but the pace is easing off in the most recent numbers…The year-over-year figures for the 10-City and 20-City Composites both slowed and 13 of the 20 cities saw slower year-over-year numbers compared to last month”
“Mortgage defaults are an important measure of the health of the housing market. Memories of the financial crisis are dominated by rising defaults as much as by falling home prices…Today as well, the mortgage default rate continues to mirror the path of home prices. Currently, the default rate on first mortgages is about three-quarters of one percent, a touch lower than in 2004. Moreover, the figure has drifted down in the last two years.” Said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
