The House Price Index (HPI) is a broad measure of the price movement of single-family properties in the United States. The HPI has been published and updated by. What is the House Price Index? The Federal Housing Finance Agency (FHFA) publishes and updates the HPI. In addition to serving as an indicator of housing price trends, the HPI also functions as an analytical tool for estimating changes in mortgage default rates, prepayments and housing affordability.
The House Price Index (HPI) is a measure of the average price of residential properties in a particular region or country. The Land Registry publishes it every month and is publicly available here. It is used to track changes in the value of residential property over time. The HPI is calculated using data on the sales prices of properties in a given area and takes into account factors such as the size, location and age of the property. HPI is generally expressed as a percentage change in property value over a specific period of time, such as a month or year.
It's a useful tool for policymakers, investors, and homeowners who want to keep abreast of real estate market trends. Many factors reduce the value of a home, such as any new construction planned in an area that is not considered desirable, such as a highway. If you're looking for a new home or just curious about real estate trends, you may have heard the term home price index (HPI). Meanwhile, the number of homes available for sale is increasing in many metropolitan areas, which is also holding back home price growth. The index is built by aggregating county-level data to create seasonally adjusted and non-seasonally adjusted national indices that are representative of the entire country and are designed to serve as indicators of general single-family home price trends.
High mortgage rates and continued affordability restrictions increasingly limit homebuyer demand and therefore slow down the pace of home price appreciation. The Fannie Mae Home Price Index (FNM-HPI) is a national repeated transaction home price index that measures the average quarterly price change of all single-family properties in the United States, excluding condominiums. It's important to note that HPI is only a tool for tracking real estate market trends and should be used in conjunction with other data sources to get a complete picture of the market. The FHFA created additional indices to answer questions about house price changes in other market segments, such as the All Transactions Index (AT), which includes refinancing data, or the expanded PO Index, which includes purchase data from the entire single-family real estate market.
The “four-quarter percentage change in home values” is simply the change in price relative to the value of homes quarter of the previous year. Even rising interest rates can lower the value of a home, as rising mortgage rates make homes more expensive, reducing demand. The FHFA HPI is also a useful analytical tool for many issues related to housing finance, such as updating the current value of residential real estate assets, estimating potential mortgage defaults and any losses in the event of default, predicting the prepayment speeds of financial securities, and measuring differences in housing affordability in specific geographic areas. The Agency creates the FHFA set of HPI based on tens of millions of home sales and provides information on home price fluctuations nationwide, census divisions, state, metropolitan area, county, zip code and census districts.
