The pick-up in job creation, the return of more clement weather and the decline in mortgage interest rates helped home sales rise by a strong 6.1% m/m in May. However, house prices are still responding to the weakening in home sales earlier in the year, with the Case-Shiller and CoreLogic indices posting gains of just 0.2% and 0.1% m/m respectively in the latest data. Looking ahead, despite an anticipated further strengthening in sales, an increase in the inventory of homes for sale means that house prices will continue to slow.
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