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Economy in Brief

U.S. FHFA House Price Inflation Remains Firm
by Tom Moeller  July 25, 2017

The Federal Housing Finance Agency's (FHFA) index of U.S. house prices rose 7.5% (AR) during the last three months, compared to a 6.2% gain during all of last year. In May, prices rose 0.4% (6.9% y/y) following a 0.6% April gain, revised from 0.7%.

The performance of home prices continued to vary greatly around the country. On the strong side was the Pacific region where prices rose 8.7% y/y. That was followed by the Mountain states with a 7.7% y/y increase. The South Atlantic and West South Central regions also posted 7.7% y/y home price inflation.

Showing slightly slower rates of increase were states in the East North Central and New England regions where prices rose 6.3% y/y. Prices in the West North Central region improved 5.7% y/y, while in the East South Central region prices increased 5.5% y/y.

The slowest house price inflation occurred amongst states in Middle Atlantic region where prices rose 4.0% y/y. The rate of gain during the last three months declined to 3.0% from 11.4% in the prior three months.

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 %)
May Apr Mar May Y/Y 2016 2015 2014
Total 0.4 0.6 0.8 6.9 6.2 5.6 5.4
  Pacific 0.8 0.5 1.6 8.7 8.1 8.0 9.4
  Mountain -0.2 1.0 0.7 7.7 8.0 7.9 7.2
  South Atlantic 0.5 1.1 1.2 7.7 7.2 6.5 5.8
  West South Central 1.0 1.5 0.1 7.7 6.1 6.4 5.6
  East North Central 0.2 -0.0 1.3 6.3 5.4 4.5 4.5
  New England -0.0 0.6 0.2 6.3 4.0 3.6 3.1
  West North Central 0.5 0.2 0.7 5.7 5.7 4.3 4.1
  East South Central 0.8 -0.3 -0.3 5.5 5.3 4.8 3.5
  Middle Atlantic -0.5 0.6 0.0 4.0 3.6 2.7 2.2


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

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