Home prices rose at the fastest annual pace in 7 years
May 28, 2013
Home prices rose at the fastest annual pace in 7 years in March as the sector continues to rebound after the housing bubble burst. The Case Shiller 20-city Home Price Index rose 10.9% year-over-year ended in March, above the 10.1% expected. On a month-over-month basis, the index rose 1.12%. In the first quarter of 2013, the seasonally adjusted national index was up 3.9%, above the 2.4% from the final quarter of 2014.
Global Stocks are rising after central banks around the globe reassured investors that easy money policies will continue through 2013 and should last until mid-2014. U.S. Stocks opened sharply higher and is putting a big dent in Bond prices. The recent fall in Bond prices have caused home loan rates to rise in the past few week, though rates are still closer to record low levels. Bond prices and home loan rates work in inverse relationships, as Bond prices rise, rates tend to move lower and vice versa.
The summer driving season kicked off this past weekend with gas prices at the pump at $3.65 a gallon on Memorial Day. This good news for motorists is that prices tend to move lower in June and will most likely decline as the summer unfolds.
Americans across the nation are feeling more optimistic on the economy due to an improving job market and better than expected economic data that has been reported lately. The Consumer Confidence Index rose to 76.2 in May, the highest level since February 2008. A spokesperson for the Conference Board, which issues the survey, said, “Consumers’ assessment of current business and labor-market conditions was more positive and they were considerably more upbeat about future economic and job prospects.”