• Cindy MacDonell
  • News
  • Market Forecast: Case-Shiller Home Price Index, Pending Home Sales, and Core Inflation

Market Forecast: Case-Shiller Home Price Index, Pending Home Sales, and Core Inflation

  • March 27, 2017

Mortgage rates trended downward last week.  When the Federal Reserve raises the short-term interest rate, long-term rates like mortgage rates may not react immediately. This week, there will be the S&P Case-Shiller home price index, the pending home sales report, and the consumer spending, personal income, and core inflation report.

The S&P Case-Shiller home price index tracks changes in the value of homes in 20 major metropolitan regions across the United States.  Last week, the Federal Housing Finance Agency (FHFA) home price index showed no change in home value from December to January.  However, the FHFA index only accounts for homes that are financed through conventional mortgages backed by Fannie Mae and Freddie Mac.  The Case-Shiller index accounts for a larger sample of homes.

The National Association of Realtors (NAR) pending home sales report started the year off with a decline, attributed to rising mortgage rates and a low supply of available homes.  NAR chief economist, Lawrence Yun, explained that buyer traffic is outpacing seller traffic in many regions, and homes are selling at a much faster rate than just a year ago.

Personal income and consumer spending account for the core inflation report.  Personal income represents the total income a household takes in from all sources including wages and investments.  Consumer spending is the total spending on goods and services.  Consumer spending accounts for two-thirds of Gross Domestic Product (GDP) activity, so the consumer spending report is an important indicator of the economic temperature.

Spring and summer tend to be the busier for the housing market than the winter months.  Even if rates were to tick back upward, they remain historically low. 


Sources: Mortgage News Daily, CNBC, CNBC, MarketWatch, Bloomberg

Cindy MacDonell
Senior Loan Officer
NMLS # 316198
Branch NMLS # 1270689

Cindy MacDonell

PHONE: (707) 781-8185

© 2016 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; Loans made or arranged pursuant to a California Finance Lenders Law license No. 6053674. Offer of credit is subject to credit approval. For State specific licensing, visit www.cmgfi.com/licensing.php. To verify our state licenses, please visit www.nmlsconsumeraccess.com. This site is not intended to serve as a business solicitation for residents in the state of Massachusetts and New York.