The FHFA House Price Index Rises 0.7% Beating Expectations

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The FHFA house price index climbed 0.7 per cent month-over-month in June.The number was up 1.8 per cent from the first quarter.

“Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter,” said FHFA Principal Economist Andrew Leventis.

“The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase.”

Expectations: Analysts polled by Bloomberg expect the house price index to rise 0.6 per cent month-over-month in June, compared with 0.8 per cent in May.

A rise in the index would add to signs that housing has a turned a corner.

The FHFA’s House Price Index (HPI) is calculated using purchase prices of houses with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.

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