Stocks are lower and Mortgage Bonds are higher so far this morning. It’s another quiet news day, but CoreLogic did release their Home Price Index, showing that home prices increased 0.3% from July to August and 6.4% year over year. Appreciation continues to moderate, but we are still seeing reasonably good numbers in a sustainable pattern. CoreLogic also forecasts a 0.2% rise in home prices next month and 5.2% from August 2014 to 2015, which is in line with healthy, sustainable appreciation. Mark Fleming, Chief Economist for CoreLogic, said, “Continued moderation of home price appreciation is a welcomed sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future.” This is many people’s thoughts on Wall Street.
There are 13 Fed members scheduled to speak this week. New York Fed President, William Dudley, said that he would be delighted to hike rates in 2015, but it would require cooperation from the economy. He thinks that for now, very accommodative monetary policy is still needed. Kansas City Fed President, Esther George, thinks it’s time to start the tightening process, and if we wait too long we will have to move faster and steeper with interest rates and it will destabilize the economy in the long term. Narayana Kocherlakota and William Dudley are scheduled to speak later this afternoon. I will update you with any noteworthy comments!!!