Recent Updates

  • China: U.S.-China Trade Deal (Aug)
  • Vietnam: BOP (Q2)
  • US: New Residential Sales, Final Building Permits (Aug)
  • Belgium: Business Surveys (Sep)
  • more updates...

Economy in Brief

U.S. FHFA House Price Index Continued to Soar in May
by Sandy Batten  July 27, 2021

• Third consecutive monthly gain exceeding 1.5% m/m.

• Y/Y rate of advance hits another record high.

• Double-digit annual gains spread across the country with three regions posting annual increases in excess of 20%.

The Federal Housing Finance Agency (FHFA) House Price Index surged 1.7% m/m (18.0% y/y) in May after rising a record 1.8% m/m in April and 1.6% m/m in March. The 18.0% y/y rise was another new record, the seventh consecutive month in which the y/y rate has been a series record. The home price series dates back to January 1991. Upward pressure is being put on home prices from strong demand, low mortgage rates and limited home supplies.

By region, house prices were strong throughout the country. The strongest y/y growth was logged in the Mountain region (23.1% y/y), New England (21.7% y/y) and the Pacific region (21.4% y/y). These three regions also posted the largest monthly gains in May (each above 2% m/m), followed closely by a 2.1% m/m rise in the West North Central region.

Posting stellar, though slightly slower, annual gains were the Middle Atlantic (17.6% y/y), the South Atlantic (17.6% y/y) and the East South Central (17.0% y/y) regions. Somewhat lesser growth was recorded in the West North Central (16.0% y/y), East North Central (15.9% y/y) and West South Central (15.4% y/y) regions of the country.

The FHFA house price index is a weighted purchase-only index that measures average price changes in repeat sales of the same property. An associated quarterly index 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 2020 2019 2018
Total 1.7 1.8 1.6 18.0 7.9 5.2 6.3
  New England 2.3 1.9 2.2 21.7 8.3 4.7 5.2
  Middle Atlantic 1.0 2.2 1.8 17.6 7.4 4.5 5.2
  East North Central 1.3 1.4 1.3 15.9 7.8 5.4 6.3
  West North Central 2.1 1.6 0.8 16.0 7.2 5.1 5.8
  South Atlantic 1.7 1.5 2.0 17.6 8.2 5.6 6.8
  East South Central 1.6 2.2 1.5 17.0 8.2 5.8 5.9
  West South Central 1.4 1.9 1.0 15.4 6.4 4.6 5.0
  Mountain 2.2 2.5 2.6 23.1 9.9 7.0 9.0
  Pacific 2.4 2.0 1.8 21.4 8.0 4.6 7.2
close
large image