Highlights
Today's two reports on home prices give at face value contradictory reports. Earlier this morning Case-Shiller showed a sizeable decline for September. However, according to the FHFA, house prices in September gained 0.9 percent after slipping 0.2 percent the month before (originally down 0.1 percent). The September increase came in higher than analysts' expectation for no change.

On a year-on-year basis, the FHFA HPI is down 2.2 percent versus down 4.2 percent in August.

Eight of the nine Census Divisions posted gains in September, led by a 2.5 percent jump for the West North Central region. Only the East South Central region declined, down 0.2 percent.

Today's report and the Case-Shiller report diverge as the Case-Shiller 20-city composite (SA) fell 0.6 percent after a 0.3 percent dip in August. The difference in recent trends likely is tied to differences in coverage. The FHFA index includes only sales funded by conventional loans either financed or bundled by government housing agencies. In contrast, the Case-Shiller index includes sales funded by all types of loans and does not have a price cap on the mortgage as does FHFA. Housing price weakness currently appears to be greatest at the low end and high end. FHFA would not capture the increased share of cash sales involving distressed sales. High foreclosure rates are still weighing on the broad housing market but less so for homes in the mid-price range.

On the news, equities gained but largely on a better than expected consumer confidence number.

Market Consensus before announcement
The FHFA purchase only house price index slipped 0.1 percent in August after edging up 0.1 percent the prior month. The August dip ended a string of four monthly gains in a row. On a year-on-year basis, the FHFA HPI was down 4.0 percent, compared to down 4.1 percent in July.

2011 Release Schedule

Released On: 1/25 2/24 3/22 4/21 5/25 6/22 7/21 8/24 9/22 10/25 11/29 12/22 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct