FHFA House Price Index Rises 4.2% Year-Over-Year in November

On Tuesday, the Federal Housing Finance Agency (FHFA) reported that according to its seasonally adjusted House Price Index (FHFA HPI®), US home prices rose 0.3% in November. The previously reported 0.4% price growth in October was revised upward to 0.5%. Year-over-year, prices rose 4.2% in November.

However, in a repeat of previous HPI updates, price growth both nationally and regionally showed signs of slowing. The 12-month growth rate in November was 2.7 percentage points lower than it was as of November 2023—the fourth straight month in which the year-over-year growth rate was lower than it had been a year earlier.

Among the nine Census divisions, the change in seasonally adjusted monthly home prices ranged from a 0.6% decline in the East South Central division to a 0.9% increase in the West North Central and New England divisions. The 12-month changes were positive in every region, ranging from an increase of 1.8% in the West South Central division to a 7.7% increase in the New England division.

In remarks accompanying the report, Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics, said:

“Annual house price gains continued to moderate in November, with sales prices in all nine Census divisions exhibiting slower pace of growth than a year earlier. The slowdown in price growth is likely due to higher mortgage rates contributing to cooling demand.”