US Index of Housing Prices Was Unchanged In June

Home prices held steady from a year earlier in June as high mortgage rates kept both buyers and sellers on the sidelines.

The S&P CoreLogic Case- Shiller National Home Price Index, which measures home prices across the nation, was unchanged year-over-year in June, compared with a 0.4% annual decrease the prior month.

On a month-over-month basis, the index rose a seasonally adjusted 0.7% in June, the fifth straight monthly increase. Mortgage rates surged last year, making home purchases less affordable and pushing many buyers out of the market.

But home prices only fell a small amount on a national basis and are now starting to tick higher again. The very low inventory of homes for sale has supported prices, as homeowners with low fixed mortgage rates are unwilling to sell.

“While home prices fell year-over-year in June, prices may have turned a corner,” said Lisa Sturtevant, chief economist at Bright MLS. “For months, home prices have continued to rise even with elevated mortgage rates because supply has been so limited.”

The Case-Shiller index, which measures repeat-sales data, reports on a two-month delay and reflects a three-month moving average. Homes usually go under contract a month or two before they close, so the June data is based on purchase decisions made earlier this year.

The median existing-home sale price rose 1.9% in July from a year earlier to $406,700, according to the National Association of Realtors.

The Case-Shiller 10-city index fell 0.5% over the year ended in June, following a 1.1% decline in May. The 20- city index fell 1.2%, compared with a 1.7% decline in May.

Economists surveyed by The Wall Street Journal expected the 20-city index to decline 1.5%. Chicago had the fastest annual home-price growth in the country, at 4.2%, followed by Cleveland, at 4.1%.

The weakest market was San Francisco, where prices fell 9.7% on an annual basis. A separate measure of home-price growth by the Federal Housing Finance Agency also released Tuesday found a 3.1% increase in home prices in June from a year earlier.

The FHFA index rose 0.3% in June from the prior month on a seasonally adjusted basis.

Source: Wall Street Journal

Jobless rate picked up to 4.5% in June

The unemployment rate in the Philippines increased to 4.5 percent in June with 2.33 million Filipinos available and looking for jobs, according to preliminary data at the Philippine Statistics Authority.

National Statistician Dennis Mapa said that last June, the number of jobseekers increased by 159,000 from 2.17 million in May when the jobless rate was at 4.3 percent.

However, compared to June 2022 when the unemployment rate was 6 percent, the number of jobless Filipinos decreased by 663,000.

Between June and May, the industries that contributed most to reducing the ranks of the jobless were construction (488,000 hired); agriculture and forestry (469,000); administrative and support service activities (308,000); public administration and defense (128,000); and accommodation and food service activities (104,000).

On the other hand, the industries where most jobs were lost include fishing and aquaculture (575,000 jobs); transportation and storage (205,000); arts, entertainment and recreation (124,000); real estate activities (99,000); and professional, scientific and technical activities (97,000).

Source: PSA and Inquirer

Philippine inflation eased further to 4.7% in July

1. Headline Inflation

The Philippines’ headline inflation or overall inflation slowed down further to 4.7 percent in July 2023 from 5.4 percent in June 2023. This is the sixth consecutive month of deceleration in the headline inflation and the lowest since March 2022 with an inflation rate of 4.0 percent. The average inflation rate from January to July 2023 stood at 6.8 percent. In July 2022, the inflation rate was recorded at 6.4 percent.

1.1 Main Drivers to the Downward Trend of the Headline Inflation

The continued downtrend of overall inflation in July 2023 was primarily brought about by the slower year-on-year increase in housing, water, electricity, gas and other fuels at 4.5 percent during the month from 5.6 percent in June 2023. The slower annual increment observed in the heavily-weighted food and non-alcoholic beverages at 6.3 percent in July 2023 from 6.7 percent in the previous month also contributed to the downward trend of headline inflation. The third main source of deceleration was transport, recording a faster annual decrease of -4.7 percent during the month from -3.1 percent in June 2023.

Compared with their previous month’s inflation rates, slower annual increments were noted in the indices of the following commodity groups during the month: a. Alcoholic beverages and tobacco, 10.9 percent from 11.6 percent; b. Clothing and footwear, 4.8 percent from 5.1 percent; c. Furnishings, household equipment, 5.8 percent from 6.0 percent; d. Recreation, sport and culture, 4.7 percent from 4.8 percent; e. Restaurants and accommodation services, 7.9 percent from 8.2 percent; and f. Personal care, miscellaneous goods and services, 5.6 percent from 5.8 percent.

On the contrary, the index of education services exhibited a faster year-on-year increase at 3.7 percent during the month from 3.6 percent in June 2023.

Meanwhile, the indices of the rest of the commodity groups retained their respective previous month’s annual growth rates.

1.2 Main Contributors to the Headline Inflation

The top three commodity groups contributing to the July 2023 headline inflation were the following: a. Food and non-alcoholic beverages with 50.0 percent share or 2.4 percentage points; b. Housing, water, electricity, gas and other fuels with 20.2 percent share or 1.0 percentage point; and c. Restaurants and accommodation services with 16.0 percent share or 0.8 percentage point. 2. Food Inflation

Food inflation at the national level continued to decelerate for the sixth consecutive month at 6.3 percent in July 2023. In the previous month, food inflation was recorded at 6.7 percent, while it was 7.1 percent in July 2022.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in July 2023 was primarily influenced by the annual decrease in meat and other parts of slaughtered land animals at -1.7 percent during the month from 0.3 percent in the previous month. This was followed by fish and other seafood with an inflation of 4.5 percent in July 2023 from 6.2 percent in June 2023. Also contributing to the downtrend of food inflation in July 2023 was the slower year-on-year growth of sugar, confectionery and desserts at 21.4 percent during the month from 28.9 percent in the previous month.

Lower inflation rates during the month were also noted in the indices of the following food items: a. Flour, bread and other bakery products, cereals, 10.1 percent from 11.0 percent; b. Milk, other dairy products and eggs, 9.7 percent from 11.2 percent; c. Oils and fats, 2.0 percent from 5.6 percent; d. Fruits and nuts, 8.4 percent from 11.4 percent; and e. Food products not elsewhere classified, 7.8 percent from 8.5 percent.

Meanwhile, compared with their previous month’s inflation rates, higher year-on-year growth rates were observed in the indices of rice at 4.2 percent from 3.6 percent; corn at 5.8 percent from 5.3 percent; and vegetables, tubers, plantains, cooking bananas and pulses at 21.8 percent from 12.7 percent.

2.2 Main Contributors to the Food Inflation

Food inflation shared 45.8 percent or 2.2 percentage points to the overall inflation in July 2023. The food groups with the highest contribution to food inflation during the month were the following: a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, with 32.4 percent share or 2.0 percentage points; b. Vegetables, tubers, plantains, cooking bananas and pulses, with 27.1 percent share or 1.7 percentage points; and c. Milk, other dairy products and eggs, with 12.5 percent share or 0.8 percentage point.

Source: PSA