Global| Apr 25 2017U.S. FHFA House Price Index Regains Strength
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Housing Finance Agency's (FHFA) index of U.S. house prices increased 0.8% during February (6.5% y/y) following a 0.2% January rise, revised from no change. It was the strongest increase since March of last year. During the [...]
The Federal Housing Finance Agency's (FHFA) index of U.S. house prices increased 0.8% during February (6.5% y/y) following a 0.2% January rise, revised from no change. It was the strongest increase since March of last year. During the last three months, however, the 5.5% annualized rate of increase remained down versus the 8.0% pace as of September.
The performance of home prices varied greatly around the country. On the strong side were prices in the East South Central region which rose 1.8% and 9.9% over the last three months. In New England, prices jumped 1.7% and a strong 9.4% since November. In the Mountain states, home prices surged 1.3% with three-month growth also a strong 9.1% (AR). Prices in the West South Central region also gained 1.3% (6.0% y/y) and an improved 5.3% over the last three months.
Prices increased 1.1% in the Middle Atlantic region and rose a reduced 2.7% over three months, down from 7.0% growth as of November. A more modest 0.7% rate of increase was logged in the East North Central region with prices up 6.6% over three months.
In the West North Central region, a 0.4% gain was registered, but three-month growth weakened to just 3.1%, half the gain as of January. Prices in the South Atlantic region eased 0.1%, up 3.6% over three months versus 9.4% growth early last year.
The FHFA house price index is a weighted repeat sales index, measuring 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 %) | Feb | Jan | Dec | Feb Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total | 0.8 | 0.2 | 0.4 | 6.5 | 6.2 | 5.6 | 5.4 |
| Mountain | 1.3 | 0.6 | 0.3 | 9.6 | 8.0 | 7.9 | 7.2 |
| Pacific | 0.5 | 0.7 | 0.1 | 7.7 | 8.1 | 8.0 | 9.4 |
| East South Central | 1.8 | -1.1 | 1.7 | 6.8 | 5.3 | 4.8 | 3.5 |
| New England | 1.7 | 0.4 | 0.2 | 6.6 | 4.0 | 3.6 | 3.1 |
| South Atlantic | -0.1 | 0.1 | 0.8 | 6.4 | 7.2 | 6.5 | 5.8 |
| West South Central | 1.3 | 0.4 | -0.4 | 6.0 | 6.1 | 6.4 | 5.6 |
| East North Central | 0.7 | -0.0 | 0.9 | 5.6 | 5.4 | 4.6 | 4.5 |
| West North Central | 0.4 | 0.1 | 0.2 | 5.0 | 5.7 | 4.3 | 4.1 |
| Middle Atlantic | 1.1 | 0.3 | -0.8 | 4.7 | 3.5 | 2.7 | 2.2 |
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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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