Global| Jan 22 2015U.S. FHFA Home Price Index Picks Up Steam
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. House Price Index from the Federal Housing and Finance Agency (FHFA) increased 0.8% in November following a 0.4% rise during October, initially reported as 0.6%. It was the largest increase since May of last year and pulled [...]
The U.S. House Price Index from the Federal Housing and Finance Agency (FHFA) increased 0.8% in November following a 0.4% rise during October, initially reported as 0.6%. It was the largest increase since May of last year and pulled three-month growth up to 5.3%, its best since March. Prices remained the strongest in the Pacific region, up 7.5% y/y. Three-month growth has been stable, however, at 6.8%. Home price inflation in the West South Central Region also picked up steam with its 0.6% increase pulling annual growth to 6.6%. The recent three-month change here, however, eased to 4.3%, its weakest since the spring. Home prices in the South Atlantic region were stronger. Their 1.4% November rise (6.2% y/y) pulled three-month growth to 9.8%, its strongest since July 2013.
Strength also was evident in the East South Central region where a 1.8% monthly gain (6.1% y/y) resulted in three-month growth of 8.0%, its firmest since February of last year. The Mountain states also saw improvement. A 0.7% monthly increase (5.6% y/y) left three-month growth at a firm 6.5%.
Home price improvement has been less impressive in the Middle Atlantic region where the 0.8% gain (2.1% y/y) left three-month growth at the same 2.1% rate, though that was improved from no growth during the prior two months. Amongst states in the New England region there been further deterioration in prices. The 0.9% November decline (+1.6% y/y) was the third negative figure in the last four months, leaving the three-month change in prices at -3.8%.
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 %) | Nov | Oct | Sep | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 0.8 | 0.4 | 0.1 | 5.3 | 7.6 | 3.3 | -4.0 |
| Pacific | 1.1 | 0.0 | 0.5 | 7.5 | 16.3 | 4.9 | -6.8 |
| West South Central | 0.6 | 0.0 | 0.4 | 6.6 | 6.2 | 4.3 | -1.1 |
| South Atlantic | 1.4 | 1.1 | -0.2 | 6.2 | 8.2 | 3.9 | -5.1 |
| East South Central | 1.8 | 0.2 | -0.0 | 6.1 | 4.4 | 2.4 | -2.6 |
| Mountain | 0.7 | 0.9 | -0.0 | 5.6 | 12.5 | 7.9 | -6.5 |
| East North Central | 0.2 | 0.7 | -0.1 | 4.5 | 5.5 | 2.1 | -3.6 |
| West North Central | 0.6 | 0.5 | -0.1 | 4.5 | 4.9 | 3.2 | -3.1 |
| Middle Atlantic | 0.8 | -0.2 | -0.0 | 2.1 | 2.9 | -0.1 | -3.1 |
| New England | -0.9 | -0.2 | 0.2 | 1.6 | 4.0 | -0.2 | -2.3 |
|
|
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.
More Economy in Brief
