The Case-Shiller report on home prices came out for June, and even though this is a report that provides data that is two months old it is still instructive as a barometer of the housing market. Prices still rose but at a slower pace. The year-over-year number was up 2.1%; down from 2.4% the month before. The trend is in and it is pointing downward in prices. A year ago the prices were rising at a 6.3% clip. Even with lower mortgage rates prices will likely continue to slip.

Sales of existing homes in the last report were strong whereas sales fell for new homes being built. We have seen the peak in housing this cycle. Still, there is no collapse just a slowdown. The lowering mortgage prices should help in keeping the slowdown modest especially as long as consumers still have plenty of jobs to pay for those mortgages.