US Home Prices Rise 0.3% in June FHFA House Price Index Shows, New England Strongest

The FHFA Housing Price Index rose 0.3% m/m in June after increasing 0.7% in May. House prices with mortgages guaranteed by Fannie Mae and Freddie Mac rose nationwide the FHFA House Price Index showed. For the second quarter house prices advanced by 1.7% from the previous quarter and rose by 3% from the same period last year. Of the nine census divisions, the East North Central division recorded the strongest four-quarter appreciation, posting a 5.4% increase between the second quarters of 2022 and 2023. House prices depreciated in two census divisions. The annual house price decreased by 2.0% in the Pacific division and by 2.1% in the Mountain division.

Higher mortgage rates continue to put downward pressure on affordability, weakening house price growth.

“U.S. house prices appreciated at a slightly higher rate in the second quarter amid low inventory,” said Dr. Anju Vajja, Principal Associate Director in FHFA’s Division of Research and Statistics. “While prices in a number of western states continued to decline year-over-year, house prices rose in all states quarter-over-quarter.”​

FHFA House Price Index June 2023 Highlights

  • US FHFA House Price Index (M/M) rose in June +0.3% vs +0.7% expected
  • Year-on-year, house prices advanced +3.1% y/y vs +2.8% expected
  • Of the seven census divisions with positive house price changes, the East North Central division recorded the strongest four-quarter appreciation, posting a 5.4 percent increase between the second quarters of 2022 and 2023.
  • House prices depreciated in two census divisions. The annual house price decreased by 2.0 percent in the Pacific division and by 2.1 percent in the Mountain division.
United States FHFA House Price Index YoY
United States FHFA House Price Index MoM

House prices rose in 42 states between the second quarters of 2022 and 2023.

The five areas with the highest annual appreciation were 1) Maine, 7.6 percent; 2) Connecticut, 7.6 percent; 3) New Hampshire, 7.1 percent; 4) Arkansas, 6.9 percent; and 5) New Jersey, 6.9 percent.

The areas showing the highest annual depreciation were 1) Nevada, -5.3 percent; 2) District of Columbia, -4.9 percent; 3) Utah, -4.5 percent; 4) Idaho, -4.1 percent; and 5) Washington, -3.4 percent.

House prices rose in 74 of the top 100 largest metropolitan areas over the last four quarters.

The annual price increase was greatest in Camden, NJ (MSAD) at 10.6 percent. The metropolitan area that experienced the greatest price decline was San Francisco-San Mateo-Redwood City, CA (MSAD) at -12.2 percent.

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

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