Fannie Mae on Thursday (7-14-22), in its latest Home Price Index (FNM-HPI), reported that single-family home prices in Q2 of 2022 increased at the annualized rate of 19.4%. This is down slightly from Q1’s upwardly revised rate of 20.5%.
The FNM-HPI is a national, repeat-transaction home price index measuring the average quarterly price change for all single-family properties in the United States, excluding condos. On a quarterly basis, home prices rose a seasonally adjusted 4.3% in Q2 of 2022.
In comments prepared to accompany the release of the Q2 FNM-HPI, Fannie Mae Senior Vice President and Chief Economist Doug Duncan said:
“Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth. At the end of 2021 and extending into 2022, we believe many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation. Given the sharp rise in mortgage rates since that time, and the resulting negative impact on affordability to potential homebuyers, we expect purchase demand to cool in the quarters ahead, and for home price appreciation to moderate as a result.”
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Home Prices Grew at Near-Record High in Second Quarter