FHFA House Price Index Falls for First Time Since August 2022

The Federal Housing Finance Agency (FHFA) house price index (HPI) fell to 417.5 in January, its first decline since August 2022. U.S. house prices decreased by 0.1% from the previous month and are up 6.4% from one year ago. After adjusting for inflation, the real index was down 0.2% month-over-month and up 4.7% year-over-year.

Here is the quote from the press release:

“U.S. house prices declined slightly in January, marking the first decrease since August 2022,” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “However, the year-over-year house price growth remained near the historical average.”

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.