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May FHFA Home-Price Index Posts Larger Than Expected Gain

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The FHFA's measure of home prices rose by 0.3% in May after an unrevised 0.1% decrease in the previous month, above the 0.1% gain expected in a survey compiled by Bloomberg.

Prices were up 2.2% from a year earlier in May.

Home prices rose in seven of the nine regions in May from April but fell in the Pacific and East North Central.

The monthly home price index report from the Federal Housing Finance Agency measures single-family home prices across the US with a two-month lag, broken down by region. The FHFA reports percentage gains both from the previous month and a year earlier.

Higher home prices are inflationary and a negative for bonds. The outcome for housing-related stocks is mixed, as higher prices suggest strong demand, but prices that are accelerating too fast can also deter potential buyers.

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