S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, rose 3.7 percent y-o-y in May, following a revised 3.9 percent y-o-y increase in April (originally a 4.0 percent y-o-y gain).

Economists had expected an advance of 4.0 percent y-o-y.

Phoenix (+9.0 percent y-o-y), Seattle (+6.8 percent y-o-y) and Tampa (+6.0 percent y-o-y) recorded the highest y-o-y advances in May. Three of the 19 cities reported greater price gains in the year ending May versus the year ending April.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, climbed 4.5 percent y-o-y in May, down from 4.6 percent y-o-y in the previous month.

Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices noted that “in contrast with the past eight months, May's gains were less than April’s. Although prices increased in May, in other words, they did so at a decelerating rate.” He also added that "more data will obviously be required in order to know whether May’s report represents a reversal of the previous path of accelerating prices or merely a slight deviation from an otherwise intact trend. Even if prices continue to decelerate, that is quite different from an environment in which prices actually decline.”