U.S. FHFA House Prices Virtually Unchanged M/M in May
Summary
- May FHFA HPI -0.03% (+5.7% y/y, lowest since July ’23) vs. +0.3% (+6.5% y/y) in April.
- House prices up m/m in five of nine census divisions, w/ the highest rate in New England (0.3%).
- House prices up y/y in all of the nine regions, w/ the highest rate in New England (9.2%).
U.S. house prices were essentially unchanged m/m in May after upwardly revised rises of 0.3% in April (+0.2% initially) and 0.1% in March (+0.04% previously), according to the Federal Housing Finance Agency (FHFA) House Price Index. The May flat reading followed three consecutive m/m increases, a 0.1% January easing, and a string of gains during the September 2022 to December 2023 period. The May HPI at 424.60 was 50.7% above a low of 281.78 in May 2020. The year-on-year rate of increase decelerated to 5.7% in May, the lowest since July 2023, from 6.5% in April; it was up from 2.9% in May 2023 but well below a high of 18.9% in February 2022.
House prices rose modestly m/m in May (vs. April) in five of the nine census divisions. These included New England (0.3% vs. 0.7%), East North Central (0.2% vs. 0.3%), South Atlantic (0.1% vs. 0.5%), Middle Atlantic (0.1% vs. 0.0%), and Mountain (0.1% vs. -0.1%). To the downside, house prices fell m/m in four census divisions in May (vs. April): West North Central (-0.5% vs. 0.8%), East South Central (-0.3% vs. 1.3%), Pacific (-0.3% vs. 0.3%), and West South Central (-0.1% vs. -0.3%).
Year-on-year house prices continued to gain in May, with the pace of advance accelerating (vs. April) in two of the nine census divisions. These were New England (9.2% vs. 8.7%) and Middle Atlantic (8.9% vs. 8.7%). Meanwhile, house price growth decelerated y/y in May (vs. April) in the following seven census divisions: West South Central (2.4% vs. 3.1%), Pacific (3.7% vs. 5.9%), Mountain (5.1% vs. 5.2%), East South Central (5.2% vs. 6.4%), West North Central (5.2% vs. 6.7%), South Atlantic (6.3% vs. 6.9%), and East North Central (7.1% vs. 8.1%).
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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