Home Prices Hit Best Level Since February 2005
Home prices in the United States continued their relentless climb higher in the second quarter, but higher interest rates are starting to have a noticeable impact. According to the latest Federal Housing Finance Agency report, home prices increased 0.7 percent on a seasonally adjusted basis in June compared to the previous month. The House Price Index has now logged 17 consecutive monthly price increases.
The FHFA index is based on single-family homes with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The index does not provide specific prices for homes, but the index has not posted a decline in national home prices on a monthly basis since January 2011.
In the second quarter, home prices increased 2.1 percent from the previous quarter. The FHFA’s expanded-data index — which includes transaction information from county recorder offices and the Federal Housing Administration — posted a gain of 2.4 percent for the second quarter.