Home prices continued a recent downtrend and it appears to be worsening somewhat. The FHFA purchase only house price index declined 1.6 percent in February, following a revised decrease of 1.0 percent in January (originally down 0.3 percent). The latest weakening is consistent with the increased share of home sales being distressed sales.
On a year-on-year basis, the FHFA HPI is down 5.7 percent, compared to down 4.8 percent in January.
For the nine Census Divisions, seasonally adjusted monthly price changes for month-ago February ranged from minus 3.7 percent in the Mountain Division to minus 1.5 percent in the Pacific Division. All of the nine Census Divisions declined in February.
We will get another update on home prices is with the Case-Shiller home price index out on Tuesday, April 26.