Home price appreciation remained modest in May, according to data from both FHFA and the S&P Cotality Case-Shiller Home Price Indices . Although both reports showed annual price growth improving slightly from April, appreciation continued to trail inflation, underscoring a housing market where elevated mortgage rates, affordability pressures, and uneven regional performance continue to limit broader price gains. FHFA reported that U.S. house prices increased 0.3% on a seasonally adjusted basis in May, reversing April's 0.1% decline. On an annual basis, home prices were 2.2% higher than a year earlier, up slightly from the 2.0% pace reported in April. While the monthly rebound suggests prices remain resilient, annual appreciation continues to run well below the rapid gains seen during the post-pandemic housing boom. Regional performance remained highly uneven. Among the nine census divisions, seasonally adjusted monthly price changes ranged from a 1.4% increase in the East South Central division to a 0.6% decline in the Pacific division. Looking over the past year, the Middle Atlantic division led the nation with 4.5% appreciation, while the Pacific division was the only region to post an annual decline at 0.3% , highlighting the widening gap between stronger Northeastern markets and softer conditions across much of the West.