U.S. home prices rise in September, likely to appreciate at stable pace this year and next

The S&P CoreLogic Case-Shiller U.S. National Home Price Index was up in September. On a sequential basis, it rose 0.4 percent, whereas on a year-on-year basis, the index was up 5.5 percent.

In all the 20 cities covered in the survey, prices rose. This indicates a sign of rebounding momentum in home price appreciation. However, when adjusted for inflation, prices stayed 14 percent below their previous peak, noted Wells Fargo in a research note. The year-on-year rise of 5.5 percent, when coupled with the recent rise in mortgage rates, is adding further to affordability challenges.

Out or 20 cities, 12 cities recorded price gains of 0.5 percent or more on the month. Meanwhile, home prices in 13 of the 20 metro areas in the 20-city index remained below prerecession levels. Phoenix, Las Vegas and Miami cities stayed over 20 percent below their prior peaks. On an annual basis, home prices in Portland, Seattle and Denver continued to lead gains, reflecting solid growth in job and increased in-migration but limited new home construction, said Wells Fargo.

Meanwhile, the figure for August was upwardly revised to 0.3 percent in sequential terms. In all, home prices are likely to appreciate at a stable pace for the remainder of 2016 and in 2017, according to a Barclays research report.

At 05:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -115.381. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex