Yesterday the latest Case Shiller data was reported for May, which showed that housing prices had risen 2% m/m but fell 1% y/y. Still, the May data confirms the chatter that housing may finally be turning. Housing is arguably the most important asset class in the US economy today. If housing prices rise, not only does the banking system get a lot healthier, but the consumer’s balance sheet becomes repaired too as debt/equity falls. While housing prices may be rising slightly, there’s still some way to go for anyone who bought a new home or refinanced in 05/06/07 to get above water.