Home prices continued their nearly unabated upward trend
in November according to data released on Wednesday by the Federal Housing
Finance Agency (FHFA). FHFA’s Housing
Price Index (HPI), based on the values of purchase mortgages sold to or
guaranteed by Freddie Mac and Fannie Mae (the GSEs) rose 0.5 percent in
November on a seasonally adjusted basis from the October level. October’s index, which originally posted a
0.4 percent gain, was revised down to 0.3 percent.
November home prices were up 6.1 percent compared to
November 2015. The year-over-year increase in October was 6.0 percent. During the first 11 months of 2016 prices
increased year-over-year by an average (including revisions) of 5.93 percent. The annual increase has been 6 percent or
more for the last four months on which FHFA has reported.
Analysts polled by Econoday were on the money with their
projections, expecting a 0.5 percent monthly increase. The range of their estimates
was 0.3 to 0.6 percent.
Prices increased compared to October in six of the nine
census divisions with the Pacific region jumping by 1.5 percent followed
distantly by the West North Central and Middle Atlantic divisions, each at 0.9
percent. Prices were unchanged in the
East North Central division and down by 0.1 and 0.2 percent in the West South
Central and South Atlantic respectively.
The 12-month changes were all positive, ranging from a
4.7 percent gain in the Middle Atlantic to 7.7 percent in the Pacific division.