Housing prices fell in October according to the S&P CaseShiller report released this morning, bringing the year-over-year price decline to 3.40%. The only metropolitan area reporting an increase was Phoenix, with the biggest drops coming in Atlanta, Detroit, and Minneapolis.
The report noted that foreclosures had a significant impact on prices and that the supply of those homes remains pretty high in parts of the country. Clearly the sooner foreclosure inventories are absorbed; it will eventually lay a foundation for a more healthy housing market. One wonders if regulators and politicians realize this, as servicers struggle to clear the backlog of delinquent mortgages and properties in foreclosure.
On a more positive note, according to the Conference Board its index of consumer confidence increased to 64.5, the highest reading since April of this year. The boost in confidence is attributed to the positive trend reported in the unemployment numbers for the past two months.
After this morning’s data the stock and bond markets are trading relatively unchanged from the close on Friday. Mortgage prices, however, are worse by .25%.
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