U.S. House Prices Rise 5.7 Percent over the Last Year
The U.S. house prices increased by 5.7% from the second quarter of 2023 to the second quarter of 2024, as reported by the FHFA House Price Index (HPI). This marks a 0.9% rise from the first quarter of 2024. However, on a monthly basis, the seasonally adjusted index for June 2024 showed a slight decline of 0.1% compared to May 2024.
Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics, noted that this slowdown in quarterly growth is attributed to a higher inventory of homes for sale and elevated mortgage rates, which have tempered the pace of appreciation in the housing market.
However, a decline in mortgage rates could help to drive the market higher in future quarters.
