The Home Price Index Shows That Home Values Increased In May
- July 23rd, 2009
- Write comment
Home values around the country appear to be leveling.The Federal Housing Finance Agency’s latest Home Price Index report shows values up by nearly 1 percent in May versus the month prior.
Since peaking in April 2007, values remain off by 11 percent nationwide.
The FHFA Home Price Index is an interesting metric. Different from the Case-Shiller Index which collects data from just 20 U.S. markets, the Home Price Index reflects every U.S. home that backs a mortgage sold to Fannie Mae and Freddie Mac.
In this sense, the FHFA Home Price Index is more “national” than the Case-Shiller Index but the HPI has its flaws, too.
The House Price Index specifically excludes from its measurements the sales price on any home purchase with any of following traits:
- Is new home construction
- Is a multi-unit property
- Is financed by an entity other than Fannie Mae or Freddie Mac
Because of these exclusions, some analysts say the report is incomplete. The same could be said of every method of home valuation, however.
Therefore, what’s most important to today’s home buyers and sellers is that each of the “popular” home valuation reports shows similar patterns. Home prices appear to have stopped falling and may be even starting to recover.
It won’t be for a few years that we’ll be able to look back and point to the exact month that real estate bottomed. Nevertheless, considering how the data has presented as of late, it’s reasonable to think that we’ve already hit it. Certainly, that’s what the Home Price Index suggests.
For a region-by-region breakdown of the Home Price Index, visit the FHFA website.
Share on Facebook
Mortgage markets rallied Tuesday while Fed Chairman Ben Bernanke gave his semi-annual testimony to Congress.By the time the day was over, some conforming mortgage rates were down by as much as 0.250 percent.
Mortgage markets had an awful week last week as a combination of strong economic data and stand-out earnings results led investors into more risky investments.The Dow Jones Industrial Average was up 7 percent.
The government’s First-Time Home Buyer Tax Credit expires December 1, 2009.
For the fourth consecutive month, the country’s foreclosure activity was dominated by a small number of states.
Mortgage markets worsened for the third straight Tuesday after the government reported June’s Retail Sales report came in
If you’ve been driving lately, you’ve noticed that the cost of a fill-up has gone down.
Mortgage markets improved last week on fresh concerns about the U.S. economy.With data showing neither overt strength nor weakness, and with earnings season about to start, traders got defensive with their money and parked it in bonds.
Sometimes, saving money on your mortgage is as simple as picking a better closing date.It’s all about Rate Lock Commitments.