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S&P/Case-Shiller home price index falls more-than-expected

Published 07/26/2011, 09:09 AM
EUR/USD
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Investing.com – The S&P/Case-Shiller home price index fell more-than-expected in May, declining for the eleventh consecutive month, industry data showed on Tuesday.

In a report, Standard & Poor with Case-Shiller said its house price index fell by 4.5% in May, above expectations for a 4.4% decline.

The previous month’s figure was revised to a drop of 4.2% from a previously reported decline of 4.0%.

The report showed that U.S. home prices rose 1% in May from April, building on the previous month-to-month gain.

Commenting on the report, David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said, “This is a seasonal period of stronger demand for houses, so monthly price increases are to be expected and were seen in 16 of the 20 cities.”

“However, 19 of 20 cities saw prices drop over the last 12 months. The concern is that much of the monthly gains are only seasonal,” Mr. Blitzer added.

Following the release of the data, the U.S. dollar was down against the euro, with EUR/USD gaining 0.6% to trade at 1.4464.

Meanwhile, U.S. stock index futures pared gains after the release of the data.

The Dow Jones Industrial Average futures indicated a decline of 0.1%, S&P 500 futures eased up 0.1%, while the Nasdaq 100 futures added 0.02%.

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