FHFA Home Price Index Slows


Price increases moderated slightly in
October according to the Federal Housing Finance Agency’s (FHFA’s) Housing
Price Index (HPI).  The national index,
which had recorded a 0.6 percent monthly gain in September, was up another 0.4
percent in the current reading.



The price report was slightly lower than
analysts were expecting.  Those polled by
Econoday were looking for an increase of 0.5 to 0.6 percent with a consensus around
the lower number.

The HPI increased by 6.0 percent from
October 2015
.  This also was a slight
easing of the year-over-year pace reported for September of 6.1 percent.

FHFA constructs its index from loans sold
to or guaranteed by the government sponsored enterprises (GSEs) Fannie Mae and
Freddie Mac.

The nine census regions posted
monthly changes ranging from an 0.6 percent decline in the East South Central
division (Kentucky, Tennessee, Mississippi, Alabama) to a 1.2 percent gain in
the Mountain division (Montana, Idaho, Wyoming, Nevada, Utah, Colorado,
Arizona, New Mexico.)  The New England
division had the second largest change, up 0.9 percent, notable because the
division had been posting 0.1 percent gains and even negative numbers for most
of the year.  



All regions posted positive annual
changes, ranging from 3.6 percent in the Middle Atlantic division (New York,
New Jersey, Pennsylvania) to 8.3 percent in the Mountain states.  The Pacific division was only slightly lower
with 8.0 percent growth.

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