Home prices rose in September and a surge in sales pushed existing home price appreciation to new highs according to National Association of Home Builders economics contributor Jing Fu.

The Case-Shiller (CS) national house price index and Federal Housing Finance Agency's (FHFA) price index were recently released for September. The CS national house price index accelerated to a 10.4% seasonally adjusted pace, while the price index from the FHFA rose at a 9.5% pace.

House price appreciation has largely followed the ebb and flow of existing home sales over the course of 2015 with home buyers rushing in to stay ahead of anticipated interest rate increases and falling back when the rate increase doesn’t materialize. We expect this pattern can continue as long as uncertainty about interest rates persists, but ultimately the pace of house price appreciation should moderate, drifting down to a more sustainable pace in 2016 and 2017.

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