S&P Case-Shiller's latest report shows house price inflation slowed to 4.1 percent in March from 4.5 in February on an annual basis for the 20-city measure, and slightly below expectations for 4.3 percent.

The 20-city adjusted index fell 0.1 percent on the month in March from February, seasonally adjusted. The unadjusted month on month figure showed a rise of 1.1 percent.

Meanwhile the Case-Shiller national index, covering all nine U.S. census divisions, saw a 3.4 percent rise in March from a year ago, down from 4.0 percent in February. The 10-City composite rose 4.8 percent versus 5.2 percent in February.

New York again reported the biggest annual increase among the 20 cities with a 8.0 percent increase in March, followed by Chicago and Boston with annual increases of 6.5 percent and 5.9 percent, respectively. Tampa posted the lowest with a decline of 2.2 percent from a year ago.

Home prices are seen up 4.3 percent on year in March versus 4.5 percent in February, and up 0.3 percent on the month, seasonally adjusted.

The S&P Corelogic Case-Shiller home price index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the nation. Composite indexes and regional indexes measure changes in existing home prices and are based on single-family home resales. Condominiums and co-ops are excluded as is new construction. Note that forecasters, in line with recommendations from Standard & Poor's questioning the accuracy of seasonal adjustments, track both seasonally adjusted and not seasonally adjusted monthly data for this indicator.

Home values affect much in the economy - especially the housing and consumer sectors. Periods of rising home values encourage new construction while periods of soft home prices can dampen housing starts. Changes in home values, and the ability to draw upon expanding lines of home equity loans, play key roles in consumer spending and in consumer financial health.

Beginning with the onset of the subprime credit crunch in mid-2007 and with it a downturn in home prices, the ability of borrowers to refinance their debt into affordable fixed rate mortgages was sharply constrained. This in turn limited aggregate consumer spending and contributed to the depth of the Great Recession. From their peak in late 2006 and early 2007 to their nadir in mid-2012, Case-Shiller's home price indexes fell nearly 50 percent. The subsequent recovery proved slow but steady with the indexes finally surpassing their prior highs in early 2018.