FHFA House Price Index Rises 0.8% in July

The Federal Housing Finance Agency (FHFA) house price index (HPI) continued its climb in July, coming in at 409.5. U.S. house prices increased by 0.8% from the previous month and by 4.6% from one year ago. After adjusting for inflation, the real index is up 0.8% month-over-month and up 3.4% year-over-year.

Here is the quote from the press release:

“U.S. house prices continued to appreciate in July, consistent with the trend observed over the last several months.” said Dr. Nataliya Polkovnichenko, Supervisory Economist in FHFA’s Division of Research and Statistics. “Regionally, all nine census divisions posted positive price appreciation over the last 12 months, although the Pacific and Mountain divisions experienced only modest growth.”

FHFA House Price Index

The House Price Index is a measure of the change in prices of single-family homes, using data from Fannie Mae and Freddie Mac. It helps to analyze the strength of the US housing market by watching the rise and fall of prices. As prices increase so does consumer confidence. Conversely, as prices decrease, consumer confidence declines as well.