After tumbling for the first time since 2012 in July, Case-Shiller's 20-City Composite Home Price index was expected to drop for the third straight month in September (the latest data available) as mortgage rates soared, crushing affordability; and it did, with the 20-City Composite down 1.24% MoM (as the YoY rise slowed from 13.06% to 10.43%)...

"As has been the case for the past several months, our September 2022 report reflects short-term declines and medium-term deceleration in housing prices across the U.S.," Craig J. Lazzara, managing director at S&P Dow Jones Indices, said in statement.

This three-month decline is the largest since Jan 2012...

LA, San Francisco, and New York were the biggest drags on the national home price index while Cleveland, Tampa, and Charlotte saw the smallest declines. San Francisco prices are up just 2.3% YoY - nearing its first annual price decline since 2011...

Finally, given the unprecedented explosion in mortgage rates, just where will home prices end?

We would like to think Powell's plan does not involve that kind of collapse... or maybe it is - since prices will have to fall considerably more to become affordable for the average American to follow his 'dream'.