May FHFA Home Price Index Rises Less Than Expected

The Federal Housing Finance Agency (FHFA) reported Tuesday morning that U.S. home prices rose 0.4% sequentially in May. Home prices rose 0.6% sequentially in April. The consensus estimate for May called for a month-over-month increase of 0.6%.

The FHFA monthly index is calculated using purchase prices of houses with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The data are reported for each of the nine Census Bureau divisions, along with a U.S. total.

Over the past 12 months, gains have been greatest in the Pacific states, up 8.7%, and least in the Middle Atlantic states, where prices are up 4.0%. Compared with May 2016, the inflation-adjusted home price has gained 6.9%. The index rose year over year in all nine Census divisions in May.

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Home prices posted month-over-month gains in seven of nine Census Bureau divisions. Prices were down 0.5% in the mid-Atlantic division and down 0.2% in the Mountain division. Home prices gained 1.0% in the West South Central, 0.8% in the Pacific and East South Central divisions, 0.5% in the West North Central and South Atlantic divisions and 0.2% in the East North Central division, and they remained flat in the New England division.

Across the United States, home prices rose 5.9% from May 2015 to May 2016, a full percentage point below the 12-month gain to May 2017.

See the FHFA website for more details and charts.

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