The FHFA Housing Price Index rose 0.3% m/m in October after increasing a revised 0.7% (from 0.6%) in September. For the nine census divisions, monthly price changes ranged from -0.3 percent in the New England division to +1.1 percent in the Middle Atlantic division. Year-on-year, house prices rose by 6.3% in October, accelerating from 6.2% the month before. The 12-month changes ranged from +2.6 percent in the Mountain division to +9.9 percent in the Middle Atlantic division. The shows the FHFA House Price Index House prices with mortgages guaranteed by Fannie Mae and Freddie Mac nationwide.
Higher mortgage rates continue to put downward pressure on affordability, weakening house price growth.
“U.S. house price gains remained strong over the last 12 months.” said Dr. Nataliya Polkovnichenko, Supervisory Economist in FHFA’s Division of Research and Statistics. “On a monthly basis, price appreciation moderated in October, with four divisions exhibiting slowdowns from the previous month.”
FHFA House Price Index October 2023 Highlights
- US FHFA House Price Index (M/M) rose 0.3% m/m in October after increasing a revised 0.7% (from 0.6%) in September.
- Year-on-year, house prices advanced by 6.3% in October, accelerating from 6.2% the month before
- Of the seven census divisions with positive house price changes, the Mid Atlantic division recorded the strongest month appreciation, posting a 1.1 percent increase between October and September.
- House prices depreciated in two census divisions. The monthly house price decreased by 0.2 percent in the Mountain division and by 0.3 percent in the New England 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
From The TradersCommunity News Desk