FHFA Home Price Index Increases 4.3% Year-Over-Year in Q3

On Tuesday, the Federal Housing Finance Agency (FHFA) reported that according to its House Price Index (FHFA HPI®), US house prices rose 4.3% year-over-year in Q3. When compared to Q2, prices were up 0.7%. FHFA’s seasonally adjusted monthly index for September was up 0.7% from August.

Nationally, the US housing market has experienced positive annual appreciation each quarter since the start of 2012.

All nine census divisions had positive house price changes year-over-year. The East North-Central division recorded the strongest appreciation, posting a 6.8% increase in Q3. Meanwhile, the West South-Central division recorded the smallest four-quarter appreciation at 1.6%.

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

“US house price growth slowed in the third quarter, continuing a trend that started in the fourth quarter of the previous year. While house prices continued to increase because housing demand outpaced the locked-in housing supply, elevated house prices and mortgage rates likely contributed to the slowdown in price growth.”