FHFA House Price Index Inches Up in March to New High

The Federal Housing Finance Agency (FHFA) house price index (HPI) inched up to 423.4 in March, a new all-time high. U.S. house prices increased by 0.1% from the previous month and are up 6.7% from one year ago. After adjusting for inflation, the real index was down 0.3% month-over-month and up 4.3% year-over-year.

Here is the quote from the press release:

“U.S. house prices continued to grow at a steady pace in the first quarter,” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “Over the last six consecutive quarters, the low inventory of homes for sale continued to contribute to house price appreciation despite mortgage rates that hovered around 7 percent.”

FHFA House Price Index

The FHFA 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.