FHFA House Price Index Increases 0.3% in November
The Federal Housing Finance Agency (FHFA) house price index (HPI) continued to increase in November, coming in at 417.4. U.S. house prices increased by 0.3% from the previous month and by 6.6% from one year ago. After adjusting for inflation, the real index is up 0.4% month-over-month and up 5.1% year-over-year.
Here is the quote from the press release:
“U.S. house prices continued to appreciate in November, with year-over-year growth slightly above the historical average.” said Dr. Nataliya Polkovnichenko, Supervisory Economist in FHFA’s Division of Research and Statistics. “All nine census divisions experienced positive price appreciation over the last 12 months, with five census divisions exhibiting deceleration compared to the price appreciation observed last year.”
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.