Global| Oct 25 2016U.S. FHFA House Price Index Increase Strengthens
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Housing Finance Agency's (FHFA) index of U.S. house prices increased 0.7% during August following an unrevised 0.5% July gain. The y/y change improved to 6.4% as the three-month increase rose to 6.2%, its best since April. [...]
The Federal Housing Finance Agency's (FHFA) index of U.S. house prices increased 0.7% during August following an unrevised 0.5% July gain. The y/y change improved to 6.4% as the three-month increase rose to 6.2%, its best since April.
Seasonally adjusted house prices rose in each region of the country, except in the West North Central region.
The 1.1% price rise in East North Central region raised yearly growth to a record 6.7%. A 1.2% rise in the South Atlantic states pulled the y/y increase to an improved 7.4%, as the 1.2% gain in New England raised the y/y increase to 4.6%, nearly its best of the expansion. Prices increased 0.9% in the East South Central and improved the y/y gain to 6.5%, its best since late-2006.
While improved m/m at 0.4%, the annual price rise in the Middle Atlantic region was fairly steady at 3.3%. In the West North Central region home prices were unchanged, and the y/y gain eased to 5.1%. The West South Central states realized a 0.4% price. The y/y gain moderated to 5.9%.
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 %) | Aug | Jul | Jun | Aug Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 0.7 | 0.5 | 0.3 | 6.4 | 5.7 | 5.6 | 7.5 |
| Pacific | 0.5 | 0.5 | -0.2 | 7.9 | 7.9 | 9.6 | 16.1 |
| Mountain | 0.4 | 0.4 | 0.4 | 7.6 | 8.0 | 7.5 | 12.3 |
| South Atlantic | 1.2 | 0.3 | 0.8 | 7.4 | 6.5 | 6.0 | 8.1 |
| East North Central | 1.1 | 0.2 | 0.5 | 6.7 | 4.6 | 4.7 | 5.4 |
| East South Central | 0.9 | 1.1 | -0.3 | 6.5 | 4.9 | 3.6 | 4.2 |
| West South Central | 0.4 | 0.6 | 0.5 | 5.9 | 6.6 | 5.8 | 6.2 |
| West North Central | 0.0 | 1.1 | 0.4 | 5.1 | 4.4 | 4.1 | 4.9 |
| New England | 1.2 | 0.1 | 0.2 | 4.6 | 3.5 | 3.2 | 3.9 |
| Middle Atlantic | 0.4 | 0.3 | 0.2 | 3.3 | 2.7 | 2.4 | 2.8 |
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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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