US Home Prices Increase 5.3% Year-Over-Year in Q3

According to Fannie Mae’s latest Home Price Index (FNM-HPI), US single-family home prices increased 5.3% year-over-year in Q3, up from Q2’s revised annual growth rate of 2.9%. The FNM-HPI is a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the US, excluding condos.

On a quarterly basis, home prices rose a seasonally adjusted 2.0% in Q3, a deceleration from the 2.1% growth in Q2. On a non-seasonally adjusted basis, home prices increased 1.7% in Q3.

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

“Slightly slowing house price growth may reflect in part the affordability impact of higher mortgage rate environment—even though prices were still solidly higher this quarter than a year earlier. We’re now in the fourth quarter, when house price appreciation typically slows, and with interest rates both higher and more volatile, it would be reasonable to expect some additional slowing in price appreciation, but the ongoing supply problems continue to drive the larger affordability challenge.”