Home Prices are on the Rise Again; Rates Set Another Long-Term Low

A second housing price index is showing an uptick in the rate of appreciation, possibly because interest rates declines have begun to mitigate affordability issues. CoreLogic says its Home Price Index for July was up 3.6 percent in July, the annual increase in June, was 3.4 percent. On a month over month basis the gain was 0.5 percent compared to an increase of 0.4 percent the previous month. Last week Black Knight noted that the rate of increase in its index had risen for the first time in 16 months. CoreLogic Chief Economist Frank Nothaft said, "Sales of new and existing homes this July were up from a year ago, supported by low mortgage rates and rising family income. With the for-sale inventory remaining low in many markets, the pick-up in buying has nudged price growth up. If low interest