FHFA House Price Index Reaches Record High in March

The Federal Housing Finance Agency (FHFA) has released its U.S. house price index (HPI) for March. The index reached a record high last month, coming in at 398.0. The latest reading represents a 0.6% increase in U.S. home prices from the previous month a 3.6% increase from one year ago. After adjusting for inflation, the real index is up 0.8% month-over-month and up 0.2% year-over-year.

Here is the opening of the press release:

​​​​​​​​​​​​​​​​​Washington, D.C. – U.S. house prices rose 4.3 percent between the first quarters of 2022 and 2023, according to the Federal Housing Finance Agency (FHFA) House Price Index (FHFA HPI®). House prices were up 0.5 percent compared to the fourth quarter of 2022. FHFA’s seasonally adjusted monthly index for March was up 0.6 percent from February.

“U.S. house prices generally increased modestly in the first quarter” said Dr. Anju Vajja, Principal Associate Director in FHFA’s Division of Research and Statistics. “However, year over year prices in many western states have started to decline for the first time in over ten years.”

FHFA House Price Index

The House Price Index is a measure of the change in prices of single-family homes, using data from Fannie Mae and Freddie Mac. It helps to analyze the strength of the US housing market by watching the rise and fall of prices. As prices increase so does consumer confidence. Conversely, as prices decrease, consumer confidence declines as well.