Federal Housing Finance Agency (FHFA) Home Price Index Data Shows Movement of Single Family House Prices
Posted on | July 21, 2010 | No Comments
The Federal Housing Finance Agency (FHFA) Hope Price Index (HPI) will be released tomorrow and it could go a very long way in helping many current and future homeowners determine the overall direction of housing prices. The HPI is a repeat sales index that measures prices changes in repeat sales or refinancings.
The data is collected for homes that have mortgages that are securitized or have been purchased by Fannie Mae or Freddie Mac. It is important to note that this Index does not account for “jumbo” mortgages. The HPI was created as a way to regulate Fannie Mae and Freddie Mac by analyzing their capital versus the value of their assets.
Last quarter we saw a drop in appreciation of homes for the first time in several quarters. The index was 1.9% lower for the first quarter of 2010 when compared to the fourth quarter of 2009. While the price of homes droped the price of other goods and services rose 3.5%. The data for the second quarter will go a long way in determining the overall direction of homes prices for 2010 and beyond.
Author: Jesse Wojdylo
Ask Wojdylo Column – Financial, Entertainment and Sports news with a money spin.
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