More good news on the housing market, despite the rise in mortgage rates. The latest S&P/Case-Shiller home price index gained 12.4% in July vs. a year ago--its strongest showing since early 2006. But on a month-to-month-basis, prices rose at a slower pace--1.8% in the 20-city composite of the index compared to 2.2% in June.
Related: Big Drop in Housing Starts Suggests a More Shaky Recovery: BNP Economist
"Overall the housing market is steadily gaining but it does have several headwinds--higher mortgage rates and very tight inventory," says Diana Olick, real estate correspondent at CNBC. Thirty-year fixed mortgage rates are now at 4.5%, up from 3.7% a year ago.
Related: Housing Bubble Deflated by Rising Rates
While home prices are rising--along with the stock prices of homebuilders--Olick tells The Daily Ticker they haven't moved high enough for some sellers who are still underwater (homeowners who owe more on their mortgages than their houses are worth).
Related: Housing Market Won't
Read More »from Housing Future Looks Bright But is Dependent on the Job Market: Diana Olick