Global| Aug 25 2015U.S. FHFA Home Price Increase Weakens
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. House Price Index from the Federal Housing Finance Agency (FHFA) increased 0.2% during June (5.6% y/y) following a 0.5% May rise, revised up from 0.4%. The three-month rate of increase continued to decelerate to 4.5%, [...]
The U.S. House Price Index from the Federal Housing Finance Agency (FHFA) increased 0.2% during June (5.6% y/y) following a 0.5% May rise, revised up from 0.4%. The three-month rate of increase continued to decelerate to 4.5%, remaining below the 8.2% rate of growth as of December. The three-month gain remained well under the 11.3% rate reached early in 2013.
Prices were strongest during June in the New England region where they jumped 2.5% (4.6% y/y). In the West South Central region, prices increased 0.6% (7.4% y/y). In the Middle Atlantic region, prices rose 0.4% (2.0%) but price increases here have consistently been the weakest in the country.
Home prices posted more moderate gains of 0.3% (5.2% y/y) during June in the East North Central region and 0.2% (6.0% y/y) in the South Atlantic region. In the Pacific (7.5% y/y) and in the Mountain (7.4% y/y) regions, prices remained unchanged.
Home prices were weakest in the West North Central region (3.5% y/y) and the East South Central area (4.8% y/y) where prices declined by 0.6% and 0.4%, respectively.
The FHFA house price index is a weighted repeat sales index. It measures average price changes in repeat sales. An associated quarterly index also includes refinancings on the same 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 is available in Haver's USECON database.
| FHFA U.S. House Price Index Purchase Only (SA %) | Jun | May | Apr | Jun Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total | 0.2 | 0.5 | 0.4 | 5.6 | 5.6 | 7.6 | 3.3 |
| Pacific | 0.0 | 0.5 | 0.9 | 7.5 | 9.7 | 16.2 | 4.9 |
| Mountain | 0.0 | 0.8 | 0.0 | 7.4 | 7.7 | 12.4 | 7.9 |
| West South Central | 0.6 | 0.8 | 0.7 | 7.4 | 5.9 | 6.2 | 4.3 |
| South Atlantic | 0.2 | 0.7 | 0.6 | 6.0 | 6.0 | 8.1 | 3.9 |
| East North Central | 0.3 | 1.0 | -0.5 | 5.2 | 4.8 | 5.4 | 2.1 |
| East South Central | -0.4 | -0.4 | 0.7 | 4.8 | 3.7 | 4.4 | 2.3 |
| New England | 2.5 | -0.7 | 0.6 | 4.6 | 3.2 | 4.0 | -0.2 |
| West North Central | -0.6 | -0.1 | 1.0 | 3.5 | 4.2 | 4.9 | 3.2 |
| Middle Atlantic | 0.4 | 0.0 | -0.3 | 2.0 | 2.4 | 2.9 | -0.1 |
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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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