The FHFA Housing Price Index rose 0.2% in January after decreasing 0.1% in December. House prices with mortgages guaranteed by Fannie Mae and Freddie Mac rose nationwide after being down 0.1 percent in December the FHFA House Price Index showed. Higher mortgage rates continue to put downward pressure on demand, weakening house price growth. The average prices of single-family houses with mortgages guaranteed by Fannie Mae and Freddie Mac in the United States advanced 5.3 percent in January 2023, the least since May 2020.
“U.S. house prices changed slightly in January, continuing the trend of the last few months,” said Dr. Nataliya Polkovnichenko, Supervisory Economist, in FHFA’s Division of Research and Statistics. “Many of the January closings, on which this month’s HPI is constructed, reflect rate locks after mortgage rates declined from their peak in early November. Inventories of available homes for sale remained low.”
FHFA House Price Index January 2023 Highlights
- US FHFA House Price Index (M/M) rose in Jan: +0.2% (exp -0.1%; prev -0.1%)
- Year-on-year, house prices the average prices of single-family houses with mortgages guaranteed by Fannie Mae and Freddie Mac in the United States advanced 5.3 percent in January 2023, the least since May 2020.
- Of the nine census divisions, the 12-month changes were -1.5 percent in the Pacific division to +9.6 percent in the South Atlantic division.
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
Source: FHFA
From The TradersCommunity News Desk