U.S. FHFA House Prices Ease 0.1% M/M in June; Up 0.9% Q/Q in Q2'24
Summary
- June FHFA HPI -0.1% (+5.1% y/y, lowest since July ’23) vs. +0.04% (+5.9% y/y) in May.
- House prices drop m/m in seven of nine census divisions but rise in East South Central (0.7%) and South Atlantic (0.3%).
- House prices up y/y in all of the nine regions, w/ the highest rate in Middle Atlantic (7.7%).
U.S. house prices dipped 0.1% m/m in June after being virtually unchanged in May and three consecutive monthly increases, according to the Federal Housing Finance Agency (FHFA) House Price Index. The June m/m easing was the first since January’s -0.1%. The June HPI at 424.47 was 50.7% above a low of 281.69 in May 2020. The year-on-year rate of increase decelerated to 5.1% in June, the lowest since July 2023, from 5.9% in May; it was up from 3.3% in June 2023 but well below a high of 18.9% in February 2022.
The FHFA also reported quarterly house price data today. House price appreciation continued to show signs of softening. In Q2'24, house prices grew 0.9% q/q after a 1.1% increase in Q1'24, registering the seventh straight quarterly gain but the smallest since Q1’23. The y/y rate decelerated to 5.7% in Q2, the slowest since Q3'23, after rising to 6.8% in Q1.
House prices fell m/m in June (vs. May) in seven of the nine census divisions. These included Mountain (-0.7% vs. 0.1%), New England (-0.5% vs. 0.0%), Pacific (-0.3% vs. -0.2%), West North Central (-0.2% vs. -0.4%), West South Central (-0.2% vs. -0.1%), East North Central (-0.2% vs. 0.5%), and Middle Atlantic (-0.1% vs. 0.1%). To the upside, house prices rose m/m in two census divisions in June (vs. May): East South Central (0.7% vs. -0.3%) and South Atlantic (0.3% vs. 0.1%).
Year-on-year house prices continued to gain in June, with the pace of advance accelerating (vs. May) in two of the nine census divisions. These were East South Central (6.1% vs. 5.3%) and West South Central (2.7% vs. 2.6%). Meanwhile, house price growth decelerated y/y in June (vs. May) in the following seven census divisions: Pacific (3.0% vs. 4.0%), Mountain (3.3% vs. 5.3%), West North Central (4.6% vs. 5.5%), South Atlantic (5.7% vs. 6.3%), New England (6.3% vs. 9.3%), East North Central (7.2% vs. 7.4%), and Middle Atlantic (7.7% vs. 8.9%).
The FHFA house price index is a weighted purchase-only index that measures average price changes in repeat sales of the same property. An associated quarterly index includes refinancing the same kind 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.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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