The latest data from the S&P Case-Shiller Home Price index came out earlier this week, and the results pointed to a double-digit percentage gain in home prices over the past year. Yet despite some encouraging signs, there are still several reasons to worry about the staying-power of the recent recovery in the housing market.
In the following video, Fool contributor Dan Caplinger goes through some of the troubling parts of the latest Case-Shiller report. Dan notes that gains weren't spread uniformly across the country, and that some of those cities are getting close to their mid-2000s peak levels, suggesting limited upside. Moreover, rising mortgage rates could prove problematic in sustaining further price gains. Dan concludes with some discussion of stocks affected by the housing market and their prospects going forward.
Fool contributor Dan Caplinger owns warrants on JPMorgan Chase and Wells Fargo. The Motley Fool recommends Wells Fargo and owns shares of JPMorgan Chase and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.