Global| Jul 21 2016U.S. FHFA House Price Index Rose Modestly in May
by:Sandy Batten
|in:Economy in Brief
Summary
The Federal Housing Finance Agency's (FHFA) index of U.S. house prices rose a modest 0.2% m/m (5.6% y/y) in May following an upwardly revised 0.3% m/m (5.9% y/y) increase in April. Though the y/y change in nationwide house prices has [...]
The Federal Housing Finance Agency's (FHFA) index of U.S. house prices rose a modest 0.2% m/m (5.6% y/y) in May following an upwardly revised 0.3% m/m (5.9% y/y) increase in April. Though the y/y change in nationwide house prices has been fluctuating in a relatively narrow range over the past year, this is the softest y/y reading since August 2015, and the softest monthly increase since January 2015.
For the nine census divisions, seasonally adjusted house prices fell in four regions from April to May and rose in the other five regions. The monthly changes ranged from a 1.3% m/m decline in the New England region to a 1.2% m/m increase in the Mountain region.
For the past 12 months, all regions posted increases in house prices, led by an 8.5% y/y increase in the Mountain region. The smallest price rise over the past year was the 3.4% y/y gain in the Middle Atlantic region.
The FHFA house price index is a weighted repeat sales index. It measures average price changes in repeat sales of the same property. An associated quarterly index also includes refinancings on the same kinds of properties. The indexes are 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 are available in Haver's USECON database.
| FHFA U.S. House Price Index, Purchase Only (SA %) | May | Apr | Mar | May Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 0.2 | 0.3 | 0.8 | 5.6 | 5.7 | 5.6 | 7.5 |
| New England | -1.3 | 2.0 | -0.1 | 3.9 | 3.5 | 3.2 | 3.9 |
| Middle Atlantic | 0.9 | -0.5 | -0.1 | 3.4 | 2.7 | 2.4 | 2.8 |
| East North Central | -0.2 | 0.0 | 0.7 | 4.1 | 4.6 | 4.7 | 5.4 |
| West North Central | -0.2 | 0.8 | 0.4 | 4.9 | 4.4 | 4.1 | 4.9 |
| South Atlantic | 0.1 | 0.4 | 0.9 | 6.3 | 6.5 | 6.0 | 8.1 |
| East South Central | 0.4 | 0.3 | 0.3 | 4.4 | 4.9 | 3.6 | 4.2 |
| West South Central | 0.8 | -0.1 | 1.1 | 5.7 | 6.6 | 5.8 | 6.2 |
| Mountain | 1.2 | -0.1 | 2.3 | 8.5 | 8.0 | 7.5 | 12.3 |
| Pacific | -0.1 | 0.6 | 0.9 | 7.9 | 7.9 | 9.6 | 16.1 |
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Sandy Batten
AuthorMore in Author Profile »Sandy Batten has more than 30 years of experience analyzing industrial economies and financial markets and a wide range of experience across the financial services sector, government, and academia. Before joining Haver Analytics, Sandy was a Vice President and Senior Economist at Citibank; Senior Credit Market Analyst at CDC Investment Management, Managing Director at Bear Stearns, and Executive Director at JPMorgan. In 2008, Sandy was named the most accurate US forecaster by the National Association for Business Economics. He is a member of the New York Forecasters Club, NABE, and the American Economic Association. Prior to his time in the financial services sector, Sandy was a Research Officer at the Federal Reserve Bank of St. Louis, Senior Staff Economist on the President’s Council of Economic Advisors, Deputy Assistant Secretary for Economic Policy at the US Treasury, and Economist at the International Monetary Fund. Sandy has taught economics at St. Louis University, Denison University, and Muskingun College. He has published numerous peer-reviewed articles in a wide range of academic publications. He has a B.A. in economics from the University of Richmond and a M.A. and Ph.D. in economics from The Ohio State University.
