Case Schiller Housing Numbers Show Month to Month Improvement (UMM, DMM)

The Case Schiller/S&P Housing Index was released today with 18 out of 20 cities reporting a month to month price increase. In fact the overall index of 20 cities was 3.6% above the recent low achieved in April 2009.

The index was up 1.6% month over month in July, which represents the largest positive movement in the index since 2005. Some caution needs to be observed here however as these numbers are not seasonally adjusted and July is one of the strongest sales months.

Macroshares Housing Down ETF (NYSE: DMM) and Macroshares Housing Up ETF (NYSE: UMM) are reacting to the report. These are the mirror pair etfs which reflect future forecasts of the S&P/Case Schiller index. UMM is up 5% to $26.80/share while DMM is down 4.3% to $22.60/share.

The prices of these securities reflect the market seeing residential housing prices 3-4% above current levels in 5 years.