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Welcome to the Industry page of FHFA’s website.  This page provides consolidated resources for small and large companies, trade groups, advocacy organizations, vendors, originators, servicers, investors, and mortgage insurers, among others who are interested in the nation’s housing finance system. 

 

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Refinance Report - Second Quarter 201518452<h2>​Second Quarter 2015 Highlights</h2><ul><li>Refinance volume increased slightly in June 2015 after falling in May. Mortgage rates continued to rise in June&#58; the average interest rate on a 30 year fixed rate mortgage reached 3.98 percent.</li><li>In the second quarter of 2015, 31,561 refinances were completed through HARP, bringing the total refinances through HARP from the inception of the program to 3,333,654.</li><li>HARP volume represented 5 percent of total refinance volume in the second quarter of 2015.</li><li>Year to date through June 2015, borrowers with loan‐to‐value ratios greater than 105 percent accounted for 24 percent of the volume of HARP loans.</li><li>In June 2015, 7 percent of the loans refinanced through HARP had a loan‐to‐value ratio greater than 125 percent.</li> <font face="Calibri"></font><font color="#33339b" lang="JA" face="ArialMT"><font color="#33339b" lang="JA" face="ArialMT"></font></font> <li>Year to date through June 2015, 29 percent of HARP refinances for underwater borrowers were for shorter‐term 15‐ and 20‐year mortgages, which build equity faster than traditional 30‐year mortgages.<font face="Calibri"> </font></li><li>Year to date through June 2015, HARP refinances represented 13 or more percent of total refinances in Florida and Georgia, more than double the 5 percent of total refinances nationwide over the same period.</li><li>Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.</li></ul> <a href="/Media/PublicAffairs/Pages/HARP-Refinances-Remain-Steady-Through-Second-Quarter-2015.aspx">Related News Release</a>8/27/2015 5:00:27 PM171http://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspxhtmlFalseaspx
Housing Price Index Frequently Asked Questions11119<h2 style="text-align&#58;left;">&#160;</h2><table width="75%" class="ms-rteTable-4" bgcolor="#f1f1f1" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-4"><td class="ms-rteTableEvenCol-4" style="width&#58;100%;"><h2 style="text-align&#58;center;">Table of Contents​</h2><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest1"> <font color="#276598"> <strong>1. What is the value of the HPI?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest2"> <font color="#276598"> <strong>2. What transactions are covered in the HPI?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest3"> <font color="#276598"> <strong>3. How is the HPI computed?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest4"> <font color="#276598"> <strong>4. How often is the HPI published?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest5"> <font color="#276598"> <strong>5. How is the HPI updated?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest6"> <font color="#276598"> <strong>6. How do I interpret “four-quarter,” “one-year,” “annual,” and “one-quarter” price changes?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest7"> <font color="#276598"> <strong>7. How are Metropolitan Statistical Areas (MSAs) and Metropolitan Divisions defined and what criteria are used to determine whether an MSA index is published?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest8"> <font color="#276598"> <strong>8. Does FHFA use the February 2013 revised Metropolitan Statistical Areas (MSAs) and Divisions?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest9"> <font color="#276598"> <strong>9. What geographic areas are covered by the House Price Index? (revised)</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest10"> <font color="#276598"> <strong>10. What is the methodology used by FHFA in computing the Index?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest11"> <font color="#276598"> <strong>11. How does the HPI differ from the S&amp;P/Case-Shiller® Home Price indexes?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest12"> <font color="#276598"> <strong>12. How does the House Price Index differ from the Census Bureau’s Constant Quality House Price Index (CQHPI)?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest13"> <font color="#276598"> <strong>13. Where can I access MSA index numbers and standard errors for each year and quarter?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest14"> <font color="#276598"> <strong>14. What role do Fannie Mae and Freddie Mac play in the House Price Index?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest15"> <font color="#276598"> <strong>15. Why is the HPI based on Fannie Mae or Freddie Mac mortgages?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest16"> <font color="#276598"> <strong>16. When are the indexes normalized in the downloadable ASCII data?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest17"> <font color="#276598"> <strong>17. Is the HPI adjusted for inflation?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest18"> <font color="#276598"> <strong>18. How do I use the manipulatable data (in TXT files) on the Web site to calculate appreciation rates?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest19"> <font color="#276598"> <strong>19. How is FHFA’s House Price Index constructed for MSAs?...</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest20"> <font color="#276598"> <strong>20. How can the House Price Index for an MSA be linked to ZIP codes within that MSA?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest21"> <font color="#276598"> <strong>21. How and why is the HPI revised each quarter?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest22"> <font color="#276598"> <strong>22. What transaction dates are used in estimating the index?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest23"> <font color="#276598"> <strong>23. Are foreclosure sales included in the HPI?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest24"> <font color="#276598"> <strong>24. How are the monthly House Price Indexes calculated?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest25"> <font color="#276598"> <strong>25. How are the Census Division and United States House Price Indexes formed?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest26"> <font color="#276598"> <strong>26. What weights are used in forming the Census Division and United States Indexes?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest27"> <font color="#276598"> <strong>27. For those house price indexes that are seasonally-adjusted, what approach is used in performing the seasonal adjustment?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest28"> <font color="#276598"> <strong>28. How is the Expanded-Data HPI calculated?</strong></font></a></p><p> <a href="/Media/PublicAffairs/Pages/Housing-Price-Index-Frequently-Asked-Questions.aspx#quest29"> <strong> <font color="#276598">29. What is the “distress-free” index?</font></strong></a></p></td></tr></tbody></table><p> <span style="font-family&#58;&quot;lucida bright&quot;, serif;font-size&#58;11pt;"> <font color="#000000">&#160;</font></span></p><ol><li> <strong> <a name="quest1">What is the value of the House Price Index (HPI)?</a></strong><br><br>The HPI is a broad measure of the movement of single-family house prices. It serves as a timely, accurate indicator of house price trends at various geographic levels. It also provides housing economists with an analytical tool that is useful for estimating changes in the rates of mortgage defaults, prepayments and housing affordability in specific geographic areas. The HPI is a measure designed to capture changes in the value of single-family houses in the U.S. as a whole, in various regions and in smaller areas.<br><br>The HPI is published by the Federal Housing Finance Agency (FHFA) using data provided by Fannie Mae and Freddie Mac. The Office of Federal Housing Enterprise Oversight (OFHEO), one of FHFA's predecessor agencies, began publishing the HPI in the fourth quarter of 1995.<br><br>&#160;</li><li> <strong> <a name="quest2">What transactions are covered in the HPI?</a></strong><br><br>The House Price Index is based on transactions involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac. Only mortgage transactions on single-family properties are included. Conforming refers to a mortgage that both meets the underwriting guidelines of Fannie Mae or Freddie Mac and that does not exceed the conforming loan limit. For loans originated in the first nine months of 2011, the loan limit was set by Public Law 111-242. That law, in conjunction with prior legislation, provided for loan limits up to $729,750 for one-unit properties in certain high-cost areas in the contiguous U.S. Mortgages originated after September 30, 2011 were no longer subject to the terms of prior initiatives and, under the formula established under the Housing and Economic Recovery Act of 2008, the &quot;ceiling&quot; limit for one-unit properties in the contiguous U.S. fell to $625,500. The current conforming loan limit is $417,000 in most of the U.S.<br><br>Conventional mortgages are those that are neither insured nor guaranteed by the FHA, VA, or other federal government entities. Mortgages on properties financed by government-insured loans, such as FHA or VA mortgages, are excluded from the HPI, as are properties with mortgages whose principal amount exceeds the conforming loan limit. Mortgage transactions on condominiums, cooperatives, multi-unit properties, and planned unit developments are also excluded.<br><br>&#160;</li><li> <strong> <a name="quest3">How is the HPI computed?</a></strong><br><br>The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975. The HPI is updated each quarter as additional mortgages are purchased or securitized by Fannie Mae and Freddie Mac. The new mortgage acquisitions are used to identify repeat transactions for the most recent quarter and for each quarter since the first quarter of 1975.<br><br>&#160;</li><li> <strong> <a name="quest4">How often is the HPI published?</a></strong><br><br>A comprehensive report is published every three months, approximately two months after the end of the previous quarter. Beginning in March 2008, OFHEO (one of FHFA's predecessor agencies) began publishing monthly indexes for census divisions and the&#160;U.S. FHFA continues publishing and updating these indexes each month.<br><br>&#160;</li><li> <strong> <a name="quest5">How is the HPI updated?</a></strong><br><br>Each month, Fannie Mae and Freddie Mac provide FHFA with information on their most recent mortgage transactions. These data are combined with the data from previous periods to establish price differentials on properties where more than one mortgage transaction has occurred. The data are merged, creating an updated historical database that is then used to estimate the HPI.<br><br>&#160;</li><li> <strong> <a name="quest6">How do I interpret &quot;four-quarter,&quot; &quot;one-year,&quot; &quot;annual,&quot; and &quot;one-quarter&quot; price changes?</a></strong><br><br>The &quot;four-quarter&quot; percentage change in home values is simply the price change relative to the same quarter one year earlier. For example, if the HPI release is for the second quarter, then the &quot;four-quarter&quot; price change reports the percentage change in values relative to the second quarter of the prior year. It reflects the best estimate for how much the value of a typical property increased over the four-quarter period (FAQ #2 reports the types of properties included in this estimate). &quot;One-year&quot; and &quot;annual&quot; appreciation are used synonymously with &quot;four-quarter&quot; appreciation in the full quarterly HPI releases.<br><br>Similar to the &quot;four-quarter&quot; price changes, the &quot;one-quarter&quot; percentage change estimates the percentage change in home values relative to the prior quarter. Please note that, in estimating the quarterly price index, all observations within a given quarter are pooled together; no distinction is made between transactions occurring in different months. As such, the &quot;four-quarter&quot; and &quot;one-quarter&quot; changes compare typical values throughout a quarter against valuations during a prior quarter. The appreciation rates do not compare values at the end of a quarter against values at the end of a prior quarter.<br><br>&#160;</li><li> <strong> <a name="quest7">How are Metropolitan Statistical Areas (MSAs) and Metropolitan Divisions defined and what criteria are used to determine whether an MSA index is published?</a></strong><br><br>MSAs are defined by the Office of Management and Budget (OMB). If specified criteria are met and an MSA contains a single core population greater than 2.5 million, the MSA is divided into Metropolitan Divisions. The following MSAs have been divided into Metropolitan Divisions&#58; Boston-Cambridge-Newton, MA-NH; Chicago-Naperville-Elgin, IL-IN-WI; Dallas-Fort Worth-Arlington, TX; Detroit-Warren-Dearborn, MI; Los Angeles- Long Beach-Anaheim, CA; Miami-Fort Lauderdale-West Palm Beach, FL; New York- Newark-Jersey City, NY-NJ-PA; Philadelphia-Camden-Wilmington, PA-NJ-DE-MD; San Francisco-Oakland-Hayward, CA; Seattle-Tacoma-Bellevue, WA; Washington-Arlington-Alexandria, DC-VA-MD-WV. For these MSAs, FHFA reports data for each Division, rather than the MSA as a whole.<br><br>FHFA requires that an MSA (or Metropolitan Division) must have at least 1,000 total transactions before it may be published. Additionally, an MSA or Division must have had at least 10 transactions in any given quarter for that quarterly value to be published.&#160;Blanks are displayed where this criterion is not met.<br><br>&#160;</li><li> <strong> <a name="quest8">Does FHFA use the February 2013 revised Metropolitan Statistical Areas (MSAs) and Divisions?</a></strong><br><br>Yes, FHFA uses the revised Metropolitan Statistical Areas (MSAs) and Divisions as defined by the Office of Management and Budget (OMB) in February 2013. These MSAs and Divisions are based on Census data. According to OMB, an MSA comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county as measured through commuting. For information about the current MSAs, please visit&#58; <a href="http&#58;//www.whitehouse.gov/sites/default/files/omb/bulletins/2013/b-13-01.pdf"><span style="text-decoration&#58;underline;">http&#58;//www.whitehouse.gov/sites/default/files/omb/bulletins/2013/b-13-01.pdf</span></a>.<br><br>Prior to the second quarterly release in 2013, FHFA produced metropolitan area indexes based on the December 2009 delineations provided by the OMB at <a href="http&#58;//www.whitehouse.gov/omb/assets/bulletins/b10-02.pdf"><span style="text-decoration&#58;underline;">http&#58;//www.whitehouse.gov/omb/assets/bulletins/b10-02.pdf</span></a>. That quarter's Highlights piece explains the transition from the December 2009 to the February 2013 definitions. HPIs constructed from both the 2009 and 2013 delineations are available on the Downloadable Data page under the &quot;Additional Data&quot; section then the &quot;Utility Files and Background Information for Index Construction&quot; subsection.<br><br>&#160;</li><li> <strong> <a name="quest9">What geographic areas are covered by the House Price Index?</a></strong><br><br>The HPI includes indexes for all nine census divisions, the 50 states and the District of Columbia, and every Metropolitan Statistical Area (MSA) in the U.S., excluding Puerto Rico. OMB recognizes 381 MSAs, 11 of which are subdivided into a total of 31 Metropolitan Divisions. As noted earlier, FHFA produces indexes for the divisions where they are available, in lieu of producing a single index for the MSA. In total, 401 indexes are released&#58; 370 for the MSAs that do not have Metropolitan Divisions and 31 Division indexes. The starting dates for indexes differ and are determined by a minimum transaction threshold; index values are not provided for periods before at least 1,000 transactions have been accumulated.<br><br>In each release, FHFA publishes rankings and quarterly, annual, and five-year rates of changes for the MSAs and Metropolitan Divisions that have at least 15,000 transactions over the prior 10 years. In this release, 271 MSAs and Metropolitan Divisions satisfy this criterion. For the remaining areas, MSAs and Divisions, one-year and five-year rates of change are provided.<br><br>&#160;</li><li> <strong> <a name="quest10">What is the methodology used by FHFA in computing the Index?</a></strong><br><br>The methodology is a modified version of the Case-Shiller® geometric weighted repeat- sales procedure. A detailed description of the HPI methodology is available upon request from FHFA at (202) 649-3195 or online at&#58; <a href="http&#58;//go.usa.gov/8BBT"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8BBT</span></a>.<br><br>&#160;</li><li> <strong> <a name="quest11">How does the HPI differ from the S&amp;P/Case-Shiller® Home Price indexes?</a></strong><br><br>Although both indexes employ the same fundamental repeat-valuations approach, there are a number of data and methodology differences. Among the dissimilarities&#58;</li><ol><li>The S&amp;P/Case-Shiller indexes only use purchase prices in index calibration, while the all-transactions HPI also includes refinance appraisals. FHFA's purchase-only series is restricted to purchase prices.</li><li>FHFA's valuation data are derived from conforming mortgages provided by Fannie Mae and Freddie Mac. The S&amp;P/Case-Shiller indexes use information obtained from county assessor and recorder offices.</li><li>The S&amp;P/Case-Shiller indexes are value-weighted, meaning that price trends for more expensive homes have greater influence on estimated price changes than other homes. FHFA's index weights price trends equally for all properties.</li><li>The geographic coverage of the indexes differs. The S&amp;P/Case-Shiller National Home Price Index, for example, does not have valuation data from 13 states. FHFA's U.S. index is calculated using data from all states.<br><br>For details on these and other differences, consult the HPI Technical Description (see <a href="http&#58;//go.usa.gov/8BBT"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8BBT</span></a>) and the S&amp;P/Case-Shiller methodology materials (see <a href="http&#58;//us.spindices.com/documents/methodologies/methodology-sp-cs-home-price-indices.pdf"><span style="text-decoration&#58;underline;">http&#58;//us.spindices.com/documents/methodologies/methodology-sp-cs-home-price-indices.pdf</span></a>).<br><br>A paper that analyzes in detail the methodological and data differences between the two price metrics can be accessed at <a href="http&#58;//go.usa.gov/8BBJ"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8BBJ</span></a>.<br><br>&#160;</li></ol><li> <strong> <a name="quest12">How does the House Price Index differ from the Census Bureau's Constant Quality House Price Index (CQHPI)?</a></strong><br><br>The HPI published by FHFA covers far more transactions than the Commerce Department survey. The CQHPI covers sales of new homes and homes for sale, based on a sample of about 14,000 transactions annually, gathered through monthly surveys.<br><br>The quarterly all-transactions HPI is based on more than 52&#160;million repeat transaction pairs over 40 years. This gives a more accurate reflection of current property values than the Commerce Department index. The HPI also can be updated efficiently using data collected by Fannie Mae and Freddie Mac in the normal course of their business activity.<br><br>&#160;</li><li> <strong> <a name="quest13">Where can I access MSA index numbers and standard errors for each year and quarter?</a></strong><br><br>In addition to the information displayed in the MSA tables, FHFA makes available MSA indexes and standard errors. The data are available in ASCII format and may be accessed at <a href="http&#58;//go.usa.gov/8kXz"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8kXz</span></a>.<br><br>&#160;</li><li> <strong> <a name="quest14">What role do Fannie Mae and Freddie Mac play in the House Price Index?</a></strong><br><br>FHFA uses data supplied by Fannie Mae and Freddie Mac in compiling the HPI. Each of the Enterprises had previously created a weighted repeat-transactions index based on property matches within its own database. In the first quarter of 1994, Freddie Mac began publishing the Conventional Mortgage Home Price Index (CMHPI). The CMHPI was jointly developed by Fannie Mae and Freddie Mac. The CMHPI series covers the period 1970 to the present.<br><br>&#160;</li><li> <strong> <a name="quest15">Why is the HPI based on Fannie Mae or Freddie Mac mortgages?</a></strong><br><br>FHFA has access to this information by virtue of its role as the federal regulator responsible for these government-sponsored enterprises. Chartered by Congress for the purpose of creating a reliable supply of mortgage funds for homebuyers, Fannie Mae and Freddie Mac are the largest mortgage finance institutions in the U.S. representing a significant share of total outstanding mortgages.<br><br>&#160;</li><li> <strong> <a name="quest16">When are the indexes normalized in the downloadable ASCII data?</a></strong><br><br>The ASCII data for metropolitan areas are normalized to the first quarter of 1995. That is, the HPI equals 100 for all MSAs in the first quarter of 1995. States and divisions are normalized to 100 in the first quarter of 1980. The purchase-only indexes are normalized to 100 in the first quarter of 1991. Note that normalization dates do not affect measured appreciation rates.<br><br>&#160;</li><li> <strong> <a name="quest17">Is the HPI adjusted for inflation?</a></strong><br><br>No, the HPI is not adjusted for inflation. For inflation adjustments, one can use the Consumer Price Index &quot;All Items Less Shelter&quot; series. The Bureau of Labor Statistics' price index series ID# CUUR0000SA0L2, for example, has tracked non-shelter consumer prices since the 1930s. That series and others can be downloaded at&#58; <a href="http&#58;//data.bls.gov/cgi-bin/srgate"><span style="text-decoration&#58;underline;">http&#58;//data.bls.gov/cgi-bin/srgate</span></a>.<br><br>&#160;</li><li> <strong> <a name="quest18">How do I use the manipulatable data (in TXT files) on the website to calculate appreciation rates?</a></strong><br><br>The index numbers alone (for census divisions and U.S., individual states, and MSAs) do not have significance. They have meaning in relation to previous or future index numbers, because you can use them to calculate appreciation rates using the formula below.<br><br>To calculate appreciation between any 2 quarters, use the formula&#58;<br><br>(QUARTER 2 INDEX NUMBER - QUARTER 1 INDEX NUMBER) / QUARTER 1 INDEX NUMBER<br><br>You can generate annual numbers by taking the four quarter average for each year or monthly numbers by finding the difference between two months.<br><br>&#160;</li><li> <strong> <a name="quest19">How is FHFA's House Price Index constructed for MSAs? The website says that FHFA uses the 2013 definitions based on the 2010 Census to define each MSA. Is this true for all time periods covered by each index? Or do the definitions change over time as the Census expanded its MSA definitions? For example, if the definition of an MSA added three counties between 1980 and 2000, would the value of the index in 1980 cover the three counties that were not included in the 1980 SMSA definition?</a></strong><br><br>The HPI is recomputed historically each quarter. The MSA definition used to compute the 1982 (for example) index value in Anchorage, AK would be the most recent definition. The series is comparable backwards.<br><br>&#160;</li><li> <strong> <a name="quest20">How can the House Price Index for an MSA be linked to zip codes within that MSA?</a></strong><br><br>FHFA does not publish house price indexes for specific ZIP codes. Researchers are sometimes interested in associating the MSA-level index with specific ZIP codes, however.<br>&#160;<br>Because ZIP codes sometimes overlap county boundaries, a single ZIP code can be located partially inside and outside of a Metropolitan Area. Thus, the development of a crosswalk between ZIP codes and Metropolitan Areas is not a straightforward exercise. The Department of Housing and Urban Development has released a lookup table that maps ZIP codes to the Metropolitan Area(s) that they fall within. That lookup file, as well as a discussion of the underlying technical issues, can be found here&#58; <a href="http&#58;//www.huduser.org/portal/datasets/usps_crosswalk.html"><span style="text-decoration&#58;underline;">http&#58;//www.huduser.org/portal/datasets/usps_crosswalk.html</span></a>.<br><br>&#160;</li><li> <strong> <a name="quest21">How and why is the HPI revised each quarter?</a></strong><br><br>Historical estimates of the HPI revise for three primary reasons&#58;</li><ol><li>The HPI is based on repeat transactions. That is, the estimates of appreciation are based on repeated valuations of the same property over time. Therefore, each time a property &quot;repeats&quot; in the form of a sale or refinance, average appreciation since the prior sale/refinance period is influenced.<br><br></li><li>Fannie Mae and Freddie Mac (the Enterprises) purchase seasoned loans, providing new information about prior quarters.<br><br></li><li>Due to a 30- to 45-day lag time from loan origination to Enterprise funding, FHFA receives data on new fundings for one additional month following the last month of the quarter. These fundings contain many loans originating in that most recent quarter, and especially the last month of the quarter. This will reduce with subsequent revisions, however data on loans purchased with a longer lag, including seasoned loans, will continue to generate revisions, especially for the most recent quarters.<br><br>In connection with the release of the 2012Q2 HPI results, a special revision was made to two historical HPI values. In prior releases, the all-transactions index values for Vermont-1976Q1 and West Virginia-1982Q1 were both reported to be 100.01. Those values were not correct; index values for those respective periods should have been set to missing because no modeling data were available in the underlying sample. The HPI releases for 2012Q2 and later periods reflect the change.<br><br>&#160;</li></ol><li> <strong> <a name="quest22">What transaction dates are used in estimating the index?</a></strong><br><br>For model estimation, the loan origination date is used as the relevant transaction date.<br><br>&#160;</li><li> <strong> <a name="quest23">Are foreclosure sales included in the HPI?</a></strong><br><br>Transactions that merely represent title transfers to lenders will not appear in the data. Once lenders take possession of foreclosed properties, however, the subsequent sale to the public can appear in the data. As with any other property sale, the sales information will be in FHFA's data if the buyer purchases the property with a loan that is bought or guaranteed by Fannie Mae or Freddie Mac.<br><br>&#160;</li><li> <strong> <a name="quest24">How are the monthly House Price Indexes calculated?</a></strong><br><br>The monthly indexes are calculated in the same way the quarterly indexes are constructed, except transactions from the same quarter are no longer aggregated. To construct the quarterly index, all transactions from the same quarter are aggregated and index values are estimated using the assigned quarters. In the monthly indexing model, all transactions for the same month are aggregated and separate index values are estimated for each month.<br><br>&#160;</li><li> <strong> <a name="quest25">How are the Census Division and U.S. House Price Indexes formed?</a></strong><br><br>As discussed in the Highlights article accompanying the 2011Q1 HPI Release (available for download at <a href="http&#58;//go.usa.gov/8k5d"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8k5d</span></a>), the census division indexes are constructed from statistics for the component states. For the quarterly all-transactions and purchase-only indexes, the census division indexes are constructed from quarterly growth rate estimates for the underlying state indexes. Census division index estimates are &quot;built-up&quot; from quarterly growth rate estimates (monthly growth rates for the monthly index) for the component states.<br><br>The census division indexes are set equal to 100 in the relevant base periods. Then, the index values for subsequent periods are increased (or decreased) by the weighted average quarterly (or monthly) price change for the underlying states. Index values for periods before the base period are calculated in a similar fashion; beginning with the base period value, the preceding index values are sequentially determined so that the growth rate in each period always reflects the weighted average growth rate for the component states.<br><br>The national HPI is constructed in an analogous fashion, except that the weighted components are census divisions. Because the census divisions measures are themselves weighted averages of state metrics, the U.S. index is equivalent to a state-weighted metric.<br><br>&#160;</li><li> <strong> <a name="quest26">What weights are used in forming the Census Division and U.S. Indexes?</a></strong><br><br>The weights used in constructing the indexes are estimates for the shares of one-unit detached properties in each state. For years in which decennial census data are available, the share from the relevant census is used. For intervening years, a state's share is the weighted average of the relevant shares in the prior and subsequent censuses, where the weights are changed by ten percentage points each year. For example, California's share of the housing stock for 1982 is calculated as 0.8 times its share in the 1980 census plus 0.2 times its share in the 1990 census. For 1983, the Pacific Division's share is 0.7 times its 1980 share plus 0.3 times its 1990 share.<br><br>For years since 2000, state shares are calculated as follows&#58;</li><ul><li>For the 2001-2005 interval, shares are straight-line interpolated based on the state shares in the 2000 decennial Census and the 2005 values from the American Community Survey (ACS).</li><li>For 2006-2012, the estimates are from the annual ACS.</li><li>Until 2013 ACS estimates become available, shares from the 2012 ACS are used for subsequent periods.<br><br>The year-specific estimates of the state shares of U.S. detached housing stock can be accessed at <a href="http&#58;//go.usa.gov/8k5F"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8k5F</span></a>.<br><br><strong></strong></li></ul><li> <strong> <a name="quest27">For those house price indexes that are seasonally adjusted, what approach is used in performing the seasonal adjustment?</a></strong><br><br>The Census Bureau's X-12 ARIMA procedure is used, as implemented in the SAS software package. The automated ARIMA model-selection algorithm in X-12 is employed, which searches through a series of seasonality structures and selects the first that satisfies the Ljung-Box test for serial correlation.<br>&#160;<br><br>To obtain more information on the HPI contact us via the Data and Research Contact page at <a href="http&#58;//go.usa.gov/8kN3"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8kN3</span></a>.<br><br>&#160;</li><li> <strong> <a name="quest28">How is the Expanded-Data HPI calculated?</a></strong><br><br>The approach to estimating the expanded-data HPI is detailed in the Highlights article published with the 2011Q2 HPI at <a href="http&#58;//go.usa.gov/8kNm"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8kNm</span></a>. In general, the methodology is the same as is used in the construction of the standard purchase-only HPI, except a supplemented dataset is used for estimation. The augmented data include sales price information from Fannie Mae and Freddie Mac mortgages as well as two new information sources&#58; (1) transactions records for houses with mortgages endorsed by FHA and (2) county recorder data licensed from CoreLogic. The licensed county recorder data do not include records in many U.S. counties—particularly rural ones. To ensure that the addition of the CoreLogic data to the estimation sample does not unduly bias index estimates toward price trends in urban areas, the expanded-data index for certain states is estimated by weighting price trends in areas with CoreLogic coverage and other areas. Details on this sub-area weighting can be found in the text of the Highlights piece referenced above.<br><br>&#160;</li><li> <strong> <a name="quest29">What is the &quot;distress-free&quot; index?</a></strong><br><br>FHFA released a &quot;distress-free&quot; HPI in 2012Q2 along with the Highlights article at <a href="http&#58;//go.usa.gov/8kNJ"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8kNJ</span></a>. The index is a version of the purchase-only index that removes short sales and sales of bank-owned properties from the transactions data used to compute that traditional index. The index is still in a developmental stage. An analysis of how distressed sales affect the FHFA HPI is provided in an FHFA Working Paper released August 2013 at <a href="http&#58;//go.usa.gov/8kRB"><span style="text-decoration&#58;underline;">http&#58;//go.usa.gov/8kRB</span></a>.</li>&#160;</ol><p style="text-align&#58;left;text-indent&#58;0pt;padding-left&#58;5pt;"> <a href="/AboutUs/Reports/ReportDocuments/FAQs_8252015.pdf">8/25/2015 HPI FAQs (PDF)</a></p>8/25/2015 1:00:22 PM16394http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
U.S. House Prices Rise 1.2 Percent in Second Quarter18427<p><strong>Washington, D.C. </strong>– U.S. house prices rose<strong> 1.2 percent </strong>in the second quarter of 2015 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI).&#160; This is the 16th consecutive quarterly price increase in the purchase-only, seasonally adjusted index.&#160; FHFA's seasonally adjusted monthly index for June was up <strong>0.2 percent </strong>from May. House prices rose <strong>5.4 percent </strong>from the second quarter of 2014 to the second quarter of 2015. </p><p>The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.&#160;&#160;&#160;</p><p>&quot;Home price growth in the second quarter once again far exceeded the pace of overall inflation, even as mortgage rates drifted upwards,&quot; said FHFA Principal Economist Andrew Leventis.&#160;&#160;&quot;Although too early to tell whether it's a sign of a slowdown, the monthly appreciation rate in June was more modest than we have seen in a while.&quot;</p><p>The seasonally adjusted, purchase-only HPI rose 5.4 percent from the second quarter of 2014 to the second quarter of 2015, while prices of other goods and services fell 1.4 percent.&#160; The inflation-adjusted price of homes thus rose approximately 6.9 percent over the latest year.</p><p><strong>Significant Findings</strong></p><ul><li>Home prices rose in every state between the second quarter of 2014 and the second quarter of 2015.&#160; The top five areas in annual appreciation&#58; 1) Colorado – 10.6 percent, 2) Nevada – 10.5 percent, 3) Florida – 9.7 percent, 4) Hawaii – 9.5 percent, and 5) Washington – 8.8 percent.</li></ul><ul><li>Among the 100 most-populated metropolitan areas in the U.S., four-quarter price increases were greatest in San Francisco-Redwood City-South San Francisco, CA&#160;(MSAD), where prices increased by 18.3 percent.&#160; Prices were weakest in the Allentown-Bethlehem-Easton, PA-NJ, where they fell -1.1 percent.</li></ul><ul><li>Of the nine census divisions, the South Atlantic division experienced the strongest increase in the second quarter, posting a 1.7 percent quarterly increase and a 6.1 percent increase since last year. &#160;House price appreciation was weakest in the Middle Atlantic division, where prices were flat in the second quarter. </li></ul><p>The attached packet provides tables and graphs showing home price statistics for metropolitan areas, states, census divisions, and the U.S. as a whole.&#160;<br><br><strong>Other Price Indexes</strong><br>Most statistics in the attached release reference price changes computed by FHFA's basic &quot;purchase-only&quot; HPI.&#160; In some cases, however, the reported statistics reference alternative price measures.&#160; FHFA publishes – and makes available for download – three additional varieties of home price index beyond the basic &quot;purchase-only&quot; series.&#160; Although they all use the same basic methodology, the three alternatives rely on slightly different datasets in index estimation.&#160;&#160;<br><br>The alternative measures include&#58;</p><ul><li><strong>&quot;Distress-Free&quot; </strong>house price indexes.&#160; Sales of bank-owned properties and short sales are removed from purchase-only dataset prior to estimation of the indexes.</li></ul><ul><li><strong>&quot;Expanded-Data&quot; </strong>house price indexes.&#160; Sales price information sourced from county recorder offices and from FHA-endorsed mortgages are added to the purchase-only data sample.&#160;&#160;&#160;</li></ul><ul><li><strong>&quot;All-Transactions&quot;</strong> house price indexes.&#160; Appraisal values from refinance mortgages are added to the purchase-only data sample.</li></ul><p>For some geographic areas, multiple index types are available.&#160; For instance, for individual states, three types of indexes are available.&#160; The various series tend to correlate closely over the long-term, but short-term differences can be significant.&#160; </p><p><strong>Background</strong></p><p>FHFA's HPI tracks changes in average home prices by analyzing changes in home values for the individual properties.&#160; The underlying &quot;repeat-transactions&quot; methodology constructs index estimates by statistically evaluating price appreciation (or depreciation) for homes with multiple values over time.&#160; The purchase-only HPI uses sales price information from Enterprise-purchased and Enterprise-guaranteed mortgages originated over the past 40 years.&#160; More than seven million repeat sales transactions are used in the estimation of the purchase-only HPI.</p><p><strong>Note </strong></p><ul><li>The next monthly index (including data through July 2015) will be released September 22, 2015.</li></ul><ul><li>The next quarterly HPI report, which will include data for the third quarter of 2015, will be released November 25, 2015.&#160; </li></ul><ul><li>Future HPI release dates for 2015 and 2016 are available on the <a href="/DataTools/Downloads/Pages/House-Price-Index.aspx">House Price Index page</a>. </li></ul><ul><li>Follow @FHFA on Twitter for more HPI news.</li></ul>8/25/2015 1:00:23 PM1400http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
U.S. House Price Index Report - 2Q 2015 / June18430<p>U.S. house prices rose <strong>1.2 percent </strong>in the second quarter of 2015 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). This is the 16th consecutive quarterly price increase in the purchase-only, seasonally adjusted index. FHFA’s seasonally adjusted monthly index for June was up <strong>0.2 percent </strong>from May. House prices rose <strong>5.4 percent </strong>from the second quarter of 2014 to the second quarter of 2015. </p><p>The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.</p><p>The seasonally adjusted, purchase-only HPI rose <strong>5.4 percent </strong>from the second quarter of 2014 to the&#160;second quarter of 2015, while prices of other goods and services fell 1.4 percent. The inflation-adjusted price of homes thus rose approximately 6.9 percent over the latest year.<br><br> <strong>Significant Findings</strong><br></p><ul><li>Home prices rose in every state between the second quarter of 2014 and the second quarter of 2015. The top five areas in annual appreciation&#58; 1) Colorado – 10.6 percent, 2) Nevada – 10.5 percent, 3) Florida – 9.7 percent, 4) Hawaii – 9.5 percent, and 5) Washington – 8.8 percent.<br></li><li>Among the 100 most-populated metropolitan areas in the U.S., four-quarter price increases were greatest in San Francisco-Redwood City-South San Francisco, CA (MSAD), where prices increased by 18.3 percent. Prices were weakest in the Allentown-Bethlehem-Easton, PA-NJ, where they fell -1.1 percent.<br></li><li>Of the nine census divisions, the South Atlantic division experienced the strongest increase in the second quarter, posting a 1.7 percent quarterly increase and a 6.1 percent increase since last year. House price appreciation was weakest in the Middle Atlantic division, where prices were flat in the second quarter. </li></ul><p><a href="/Media/PublicAffairs/Pages/US-House-Prices-Rise-1pt2-Percent-in-Second-Quarter-2015.aspx">Related News Release </a></p>8/25/2015 1:00:28 PM1050http://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspxhtmlFalseaspx
Overview of Fannie Mae and Freddie Mac Credit Risk Transfer Transactions18407<p>In 2012, the Federal Housing Finance Agency (FHFA) initiated a strategic plan to develop a program of credit risk transfer intended to reduce Fannie Mae's and Freddie Mac's (the Enterprises') overall risk and, therefore, the risk they pose to taxpayers.&#160; In just three years, the Enterprises have made significant progress in developing a market for credit risk transfer securities, evidenced by the fact that they have already transferred significant credit risk on loans with over $667 billion of unpaid principal balance (UPB).&#160; </p><p>Credit risk transfer is now a regular part of the Enterprises' business.&#160; The Enterprises are currently transferring a significant amount of the credit risk on almost 90% of the loans that account for the vast majority of their underlying credit risk.&#160; These loans constitute about half of all Enterprise loan acquisitions.&#160; Going forward, FHFA will continue to encourage the Enterprises to engage in large volumes of meaningful credit risk transfer through specific goals in the annual conservatorship scorecard and by working closely with Enterprise staff to develop and evaluate credit risk transfer structures.</p>8/21/2015 3:00:50 PM985http://www.fhfa.gov/AboutUs/Reports/Pages/Forms/AllItems.aspxhtmlFalseaspx

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