2016 Economic Calendar
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FHFA House Price Index  
Released On 7/21/2016 9:00:00 AM For May, 2016
PriorPrior RevisedConsensusConsensus RangeActual
M/M change0.2 %0.3 %0.4 %0.2 % to 0.6 %0.2 %
Y/Y change5.9 %5.6 %

Home sales have been on the rise and price concessions are likely part of the reason. The FHFA house price index rose only 0.2 percent in May for the weakest performance since August last year and one of the weakest of the whole recovery. The year-on-year rate is likewise sagging at recovery lows, at plus 5.6 percent for a 3 tenths dip from April.

New England is among the weakest regions, down 1.3 percent in the month with a year-on-year gain of only 3.9 percent. The Pacific and Mountain regions are the strongest, the former down slightly in the month but up 7.9 percent on the year with the latter up 1.2 percent in the month for an 8.5 percent year-on-year gain.

But gains aren't the theme of the May FHFA report, one if followed by similar weakness in next week's Case-Shiller data could lower what had been a moderately positive outlook for home-price appreciation, where for household wealth strength is necessary to offset weakness in wage growth and low interest on savings.

Consensus Outlook
FHFA house price index broke lower in April, slowing to a 0.2 percent gain. A 0.4 percent gain is expected for June, one however that would still be on the soft side for this reading. Year-on-year, the rate has been struggling to hold at the 6.0 percent line, slipping 3 tenths in April to what is still a very respectable 5.9 percent. Home-price appreciation is of special importance in a low inflation, low wage growth economy.

The Federal Housing Finance Agency (FHFA) House Price Index (HPI) covers single-family housing, using data provided by Fannie Mae and Freddie Mac. The House Price Index is derived from transactions involving conforming conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac. In contrast to other house price indexes, the sample is limited by the ceiling amount for conforming loans purchased by these government-sponsored enterprises (GSE). Mortgages insured by the FHA, VA, or other federal entities are excluded because they are not "conventional" loans. The FHFA House Price Index is a repeat transactions measure. It compares prices or appraised values for similar houses.  Why Investors Care
The FHFA House Price Index captures price data for an important segment of the housing market - home purchases with mortgages financed or bundled by federal housing agencies. However, this HPI does not cover high end housing.
Data Source: Haver Analytics

2016 Release Schedule
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