Fannie Mae Reports 6.9% Annual Increase in Q2 Single-Family Home Prices

On Thursday, Fannie Mae released its Home Prince Index (FNM-HPI) for Q2. The index is a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the US, excluding condominiums.

The FNM-HPI shows single-family home prices increased 6.9% from 2023Q2 to 2024Q2. This is down from the previous quarter’s upwardly revised annual growth rate of 7.3%. On a quarterly basis, home prices rose a seasonally adjusted 1.3% in Q2, down from the revised 2.0% growth in Q1. On a non-seasonally adjusted basis, home prices increased 3.0%.

Adding background and analysis to the report, Fannie Mae Senior Vice President and Chief Economist Doug Duncan said:

“Home prices rose again in the second quarter, but the pace of growth slowed as important elements of housing demand and supply inched closer together. Elevated mortgage rates and ongoing affordability constraints are increasingly limiting homebuyer demand and thus dampening the pace of home price appreciation. Meanwhile, the number of homes available for sale is rising in many metro areas, which is also dampening home price growth. While we expect home price growth to decelerate further in the coming quarters, a still-tight inventory of homes for sale and stretched affordability remain significant challenges and, in our view, are likely to constrain mortgage demand and home sales for the foreseeable future.”