U.S. home prices rise further in October, likely to maintain pace through 2017

Home prices in the United States further rose during the month of October, at levels near to post-financial crisis and are also expected to maintain the pace through the rest of this year and 2017. However, this signaled the continuing pace of growth momentum in the world’s largest economy.

The U.S. S&P CoreLogic Case-Shiller 20-city Home Price Index rose 0.6 percent m/m in October, coming in a touch above market expectations of 0.5 percent m/m). However, the annual rate of price appreciation remained steady at 5.1 percent, consistent with trends in other home price indices.

Prices increased in all the 20 cities covered for the second consecutive month in a sign that underlying momentum in home price appreciation remains firm.  Furthermore, all the cities barring three recorded price gains of 0.5 percent or more on the month.

Meanwhile, the September print was revised higher to 0.5 percent m/m, compared to previous 0.4 percent m/m. 

"Overall, we expect home prices to continue appreciating at a steady pace for the rest of 2016 and 2017, driven mainly by growth in disposable income," Barclays commented in its recent research report.

Meanwhile, the dollar index traded at 102.96, down -0.06 percent, while at 4:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -44.76 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex