US home prices were a tad stronger than anticipated in October

The latest Case-Shiller housing price index indicates a 1.3% year-over-year increase in home prices across the 20 largest US cities, slightly surpassing the +1.2% consensus, despite a deceleration from the +1.4% in September. Monthly prices rose by 0.3%, beating the +0.1% expectation, with September's figures revised from +0.1% to +0.2%. A separate FHFA dataset confirmed a 1.7% year-over-year price increase nationally, the lowest in 13 years, highlighting a challenging year for home builders. Some regional disparities exist, with prices in the Mid-Atlantic up 5.3% while the Lower Midwest saw a 0.7% decrease. On a positive note, home affordability has improved in inflation-adjusted terms, becoming a significant political issue. Trump has pledged "aggressive" housing reforms for next year, though specifics are scarce. National Economic Council Director Kevin Hassett mentioned potential regulatory changes to expedite approvals. Trump acknowledges the difficulty of enhancing affordability while maintaining home values, stating he does not wish to undermine existing homeowners' wealth. He aims to lower borrowing costs, depending on a new Fed chair's support, even suggesting possible legal action against Powell.