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The
S&P/Case Shiller composite index of 20 metropolitan areas gained
5.5 percent in September on a year-over-year basis compared with
5.1 percent in the year to August. It was above the 5.1 percent
estimate from a Reuters poll of economists.
"The general economy appeared to slow slightly earlier in the
fall, but is now showing renewed strength. With unemployment at
5 percent and hints of higher inflation in the CPI, most
analysts expect the Federal Reserve to raise its fed funds
target range to 25 to 50 basis points, the first increase since
2006," said David M. Blitzer, managing director and chairman of
the index committee at S&P Dow Jones Indices.
"While this will make news, it is not likely to push mortgage
rates far above the recent level of 4 percent on 30 year
conventional loans. In the last year, mortgage rates have moved
in a narrow range as home prices have risen; it will take much
more from the Fed to slow home price gains."
(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama)
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