House prices in the U.S. rose 0.6 percent in July on a seasonally adjusted basis according to the Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI), up from a 0.2 percent monthly gain in June. The FHFA HPI is calculated using home sales information from mortgages sold to, or guaranteed by Fannie Mae and Freddie Mac. According to the Index, housing prices are up 5.8 percent from one year ago.
Prices rose in seven of the nine census divisions, with changes ranging from a 1.6 percent gain in the Mountain division, to declines of 1.2 percent in New England. On a yearly basis, all divisions posted gains. Prices in the Mountain division saw the most pronounced gains, rising 9.4 percent year-over-year, followed closely by the Pacific region at 8.1 percent. New England and the Middle Atlantic saw mild year over year gains, with house prices growing by 2.1 and 3.0 percent respectively.
House prices continue to rise even as sales have stalled in recent months, as high demand coupled with tight inventory appear to have deterred some buyers according to the National Association of Realtors (NAR). The NAR expects low inventory to continue to limit options for home buyers this fall.
Read the FHFA release.
