Global| Dec 23 2014U.S. FHFA Home Price Index Moves Higher
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. House Price Index from the Federal Housing and Finance Agency (FHFA) increased 0.6% in October (4.5% y/y) following an unrevised no-change during September. The increase left three-month growth at 4.5%, about where it's been [...]
The U.S. House Price Index from the Federal Housing and Finance Agency (FHFA) increased 0.6% in October (4.5% y/y) following an unrevised no-change during September. The increase left three-month growth at 4.5%, about where it's been since the Spring. Prices remained the strongest in the Pacific region, up 6.0% y/y, though recently growth eased. Home price inflation in the Mountain region eased to 5.1% y/y versus the April 2013 high of 14.2%. Downward momentum has stabilized, however, with three-month growth a positive 9.0%. In the West North Central region, the observation is the same. Prices rose 0.5% (3.8% y/y) and the three-month growth rate of 3.9% is improved from a -0.1% as of June. In the East North Central region, three-month growth picked up to 8.2%, its best in six months.
Much improvement in prices is not in evidence, however, in other sections of the country. In the Middle Atlantic Region, prices slipped 0.1% in October (+0.8% y/y) and rose just 0.8% on a three-month basis, down from 7.6% in May. In New England, prices rose 0.2% but only 2.3% y/y. The three-month decline of 1.4% was the weakest showing since the Winter. In the West South Central region, a 0.2% price decline left y/y growth at a respectable 5.6% but the 5.1% three-month change half what it was this Winter.
The FHFA house price index is a weighted repeat sales index. It measures average price changes in repeat sales or refinancings on the same properties. It is based on transactions involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac. Only mortgage transactions on single family properties are included. The FHFA data is available in Haver's USECON database.
| FHFA U.S. House Price Index Purchase Only (SA %) | Oct | Sep | Aug | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 0.6 | 0.0 | 0.4 | 4.5 | 7.7 | 3.4 | -4.0 |
| Pacific | -0.3 | 0.4 | 0.7 | 6.0 | 16.5 | 4.9 | -6.8 |
| West South Central | -0.2 | 0.5 | 1.0 | 5.6 | 6.2 | 4.3 | -1.1 |
| Mountain | 0.7 | 0.0 | 1.5 | 5.1 | 12.7 | 8.1 | -6.6 |
| East North Central | 1.1 | 0.1 | 0.9 | 5.1 | 5.5 | 2.2 | -3.6 |
| South Atlantic | 1.5 | -0.4 | -0.4 | 4.8 | 8.2 | 4.0 | -5.1 |
| West North Central | 0.5 | -0.1 | 0.6 | 3.8 | 5.0 | 3.4 | -3.2 |
| East South Central | 0.8 | -0.1 | 1.0 | 3.8 | 4.5 | 2.5 | -2.6 |
| New England | 0.2 | 0.1 | -0.6 | 2.3 | 4.0 | -0.1 | -2.2 |
| Middle Atlantic | -0.1 | 0.1 | 0.3 | 0.8 | 2.9 | 0.0 | -3.1 |
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Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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