House prices with mortgages guaranteed by Fannie Mae and Freddie Mac were flat nationwide in October the FHFA House Price Index showed. Higher mortgage rates continued to put downward pressure on demand, weakening house price growth. On an annual basis, house prices rose by 9.8 percent, the least since September of 2020 and easing from the upwardly revised 11.1 percent increase in the previous month. Among the different census regions, a 0.9% drop in home prices in the Pacific and a 0.2% decrease in the Mountain regions offset a 0.2% gain in South Atlantic and a 1.4% jump in New England.
“U.S. house prices have seen two consecutive months of near-zero appreciation,” said Nataliya Polkovnichenko, Ph.D., Supervisory Economist, in FHFA’s Division of Research and Statistics. “Higher mortgage rates continued to put downward pressure on demand, weakening house price
growth. The U.S. house price index growth decelerated as it posted the first 12-month growth rate below 10 percent after 24 consecutive months of double-digit appreciation rates.”
FHFA House Price Index October 2022 Highlights
- US FHFA House Price Index (M/M) unchanged in October (est -0.2%; prev +0.1%)
- For the nine census divisions, seasonally adjusted monthly house price changes from September to October 2022 ranged from -0.9 percent in the Pacific division to +1.4 percent in the New England division.
- The 12-month changes were all positive, ranging from +4.5 percent in the Pacific division to +14.1 percent in the South Atlantic division
The S&P CoreLogic Case-Shiller National Home Price Index, fell 0.5% in October compared with September, the fourth straight month-over-month decline. On a year-over-year basis, the index rose 9.2% in October, down from a 10.7% annual rate the prior month.
About FHFA HPI
The FHFA HPI is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.
FHFA releases HPI data and reports on a quarterly and monthly basis. The flagship FHFA HPI uses nominal, seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac. Additional indexes use other data, including refinances, FHA mortgages, and real property records. All the indexes, including their historic values, and information about future HPI release dates are available on FHFA’s website: https://www.fhfa.gov/HPI
From The TradersCommunity News Desk