The FHFA House price index for January was up 0.6 percent month-over-month.
This came in just below expectations for a 0.7 percent rise.
Home prices were up 6.5 percent on the year.
December's reading was revised down to reflect a 0.5 percent rise, compared with an initial reading of 0.6 percent.
On the month, home prices were up the most in the Pacific division (Hawaii, Alaska, Washington, Oregon and California), rising 1.6 percent. The were the weakest in the New England division (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut), falling 0.7 percent.
Earlier this month, Ivy Zelman said we're in a "nirvana for housing", and she is the most bullish she has every been.
Economists have attributed the recent bullishness to declining inventory, and a "positive feedback loop" i.e. when people think home prices are rising, they think they will continue to do so. They also think credit conditions will improve and this in turn increases demand for homes.
Here's the trajectory of home prices since January 1991:
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