U.S. FHFA House Price Index rises sequentially in June, prices likely to appreciate in months ahead

The FHFA House Price Index in the U.S. rose modestly in June. The FHFA purchase-only House Price Index was up 0.2 percent sequentially in the month, slightly below consensus expectations of 0.3 percent. The annual rate of home price appreciation eased slightly in the month from 6.7 percent to 6.5 percent. However, it continues to be on the higher end of its range in recent years.

Region rise, home prices dropped in New England and South Atlantic, and rose elsewhere. Demand for homes continues to be solid and inventories are low, particularly among existing units. Therefore, home prices are expected to continue to appreciate in the months ahead, noted Barclays in a research report. Nevertheless, affordability indicators are also indicating further deterioration in purchasing power of homebuyers which is expected to restrict the scope for much faster appreciation than the current rate, added Barclays.

At 14:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 30.7062. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex