Analyzing the effects of last week's important indicators on ETFs (Part 4 of 10)
Key housing releases
Recent releases from the Federal Housing Finance Agency (the FHFA) House Price Index (or HPI) suggested another quarterly appreciation in U.S. home prices, which rose 1.2% on a seasonally adjusted basis, marking the tenth consecutive quarterly increase.
FHFA principal economist Andrew Leventis said:
“Home price appreciation in the fourth quarter was considerable, but more modest than in recent periods”. He further added that “It is too early to know whether the lower quarterly growth rate represents the beginning of more normalized price appreciation patterns or a more significant slowdown.”
FHFA HPI measures the movement of single-family house prices. It serves as a timely, accurate indicator of house price trends at various geographic levels. Economists use this indicator to predict changes in the rates of mortgage defaults, prepayments, and housing affordability in specific geographic areas. The HPI is published by the Federal Housing Finance Agency using data provided by Fannie Mae and Freddie Mac.
Home prices surged in the major 38 states within the U.S., of which five states particularly rose. Learn more in the next part of this series.
Browse this series on Market Realist:
- Part 1 - Why last week’s Chicago Fed National Activity Index was negative
- Part 2 - Why hints of spring didn’t entice consumer retail spending
- Part 3 - Why are we seeing a fall in monthly US retail sales?
- Federal Housing Finance Agency
- House Price Index