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Economy in Brief

U.S. FHFA Home Price Index Growth Decelerates Y/Y
by Tom Moeller  August 26, 2014

The U.S. House Price Index from the Federal Housing and Finance Agency (FHFA) gained 0.4% during June (5.1% y/y) after a 0.2% May increase, revised from 0.4%. The latest increase was the strongest in three months but it left the 5.1% y/y increase at its lowest point since September 2012. During the last twelve months, prices remained the strongest in the Pacific region, but the 9.4% rate of increase was half that during last summer. Annual price growth in the Mountain region also eased to 7.3% during June, roughly half the y/y rate of gain twelve months ago.

Home price inflation eased throughout the U.S. One of the larger decelerations occurred in the East South Central states where the 1.9% y/y gain was down from 7.1% y/y last summer. In the East North Central region, 3.8% growth was down from 6.8% six months ago. In the South Atlantic region home price growth of 6.1% y/y compared to 9.1% y/y as of last July. Home price growth in the East North Central region was 3.8% y/y versus a high of 6.8% y/y six months ago.

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 %) Jun May Apr Y/Y 2013 2012 2011
Total 0.4 0.2 0.1 5.1 7.7 3.4 -4.0
  Pacific 0.8 0.3 0.1 9.4 16.5 4.9 -6.8
  Mountain -0.0 0.2 -0.1 7.3 12.7 8.1 -6.6
  South Atlantic 1.3 -0.1 0.2 6.1 8.2 4.0 -5.1
  West South Central -0.1 0.9 -0.8 4.4 6.2 4.3 -1.1
  New England 0.6 0.8 -0.9 4.1 4.0 -0.1 -2.2
  East North Central -0.1 -0.2 0.5 3.8 5.5 2.2 -3.6
  West North Central -0.5 0.4 -0.2 3.0 5.0 3.4 -3.2
  Middle Atlantic 0.5 0.8 0.7 3.0 2.9 0.0 -3.1
  East South Central 0.0 -0.8 0.5 1.9 4.5 2.5 -2.6

New England: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut.
Middle Atlantic: New York, New Jersey and Pennsylvania.
East North Central: Michigan, Wisconsin, Illinois, Indiana and Ohio.
West North Central: North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Kansas and Missouri.
South Atlantic: Delaware, Maryland, D.C., Virginia, West Virginia, North Carolina, South Carolina, GA & FL
East South Central: Kentucky, Tennessee, Mississippi and Alabama.
West South Central: Oklahoma, Arkansas, Texas and Louisiana.
Mountain: Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico.
Pacific: Hawaii, Alaska, Washington, Oregon and California.

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