FHFA Home Price Index Rises 4.3% YoY in Third Quarter

On Tuesday, the Federal Housing Finance Agency (FHFA) reported that U.S. home prices are increasing, according to its Home Price Index (FHFA HPI®). increased by 4.3% year-on-year in the third quarter. Compared to the second quarter, prices rose by 0.7%. The FHFA’s seasonally adjusted monthly index for September rose 0.7% from August.

Nationally, the U.S. real estate market has experienced positive annual appreciation every quarter since the start of 2012.

All nine census divisions recorded positive year-over-year changes in home prices. The East-North-Central division recorded the strongest increase with an increase of 6.8% in the third quarter. Meanwhile, the West-South-Central division recorded the smallest increase in the last four quarters at 1.6%.

In remarks prepared for the release of the HPI report, FHFA Deputy Director of Research Statistics Anju Vajja said:

“U.S. home price growth slowed in the third quarter, continuing a trend that began in the fourth quarter of last year. While house prices continued to rise as house demand exceeded tied housing supply, increased house prices and mortgage rates likely contributed to the slowdown in price growth.”

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