FHFA House Price Index Up 0.3% in November

The Federal Housing Finance Agency (FHFA) house price index (HPI) rose to 433.4 in November, reaching a new all-time high. U.S. house prices were up 0.3 from the previous month and are up 4.2% from one year ago. The forecast showed U.S. home prices increasing 0.4% from the previous month. After adjusting for inflation, the real index was flat month-over-month and up 2.6% year-over-year.

Here is the quote from the press release:

“Annual house price gains continued to moderate in November, with all nine Census divisions showing slower pace of growth than a year ago.” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “The slowdown in price growth is likely due to higher mortgage rates contributing to cooling demand.”

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.