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FHFA House Price Index Shows Gains for Twelve Consecutive Quarters

U.S. House Prices Up 0.8 Percent in Second Quarter


Washington, DC – The Federal Housing Finance Agency (FHFA) announced today that U.S. house prices rose 0.8 percent in the second quarter of 2014, according to its purchase-only, seasonally adjusted House Price Index (HPI).  This is the twelfth consecutive quarterly price increase in the HPI.

The FHFA HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.  Compared with last year, house prices rose 5.2 percent from the second quarter of 2013 to the second quarter of 2014.  FHFA’s seasonally adjusted monthly index for June was up 0.4 percent from May, marking seven consecutive monthly increases.

“The extraordinary price appreciation observed over the last few spring seasons was not evident in the second quarter of this year.  However, house price appreciation for the nation as a whole remained positive,” said FHFA Principal Economist Andrew Leventis. “FHFA’s data indicate that house price appreciation in the quarter was near or below the baseline rate of inflation in most states.”

FHFA’s expanded-data house price index, a metric that adds transaction information from county recorder offices and the Federal Housing Administration to the HPI data sample, rose 1.3 percent over the prior quarter.  Over the last year, that index is up 6.2 percent.  For individual states, price changes reflected in the expanded-data measure and the traditional purchase-only HPI are compared on pages 17-19 of this report.

Significant Findings

  • The seasonally adjusted, purchase-only HPI rose in 40 states during the second quarter of 2014, down from 42 states and the District of Columbia during the first quarter of 2014. The top annual appreciation was in: 1) Nevada, 2) California, 3) District of Columbia, 4) North Dakota, and 5) Arizona.

  • Of the nine census divisions, the Pacific division experienced the strongest increase in the second quarter, posting a 1.3 percent quarterly increase and a 9.8 percent increase since last year. House prices were weakest in the East South Central division, where prices decreased 0.1 percent from the prior quarter.

  • As measured with purchase-only indexes for the 100 most populated metropolitan areas in the U.S., second quarter price increases were greatest in the Winston-Salem, NC Metropolitan Statistical Area (MSA) where prices increased by 4.6 percent. Prices were weakest in the Birmingham-Hoover, AL MSA, where they fell 4.9 percent. Positive quarterly appreciation was recorded in 74 of the 100 MSAs.

  • The monthly seasonally adjusted, purchase-only index for the U.S. has increased for seven consecutive months and 23 of the last 24 months (it decreased in November 2013).

  • The Pacific and Mountain census divisions—the two divisions that saw the greatest price increases last quarter—continued to decelerate.

FHFA’s “distress-free” house price indexes, which are published for 12 large metropolitan areas (page 32), have recently reported lower quarterly appreciation than FHFA’s traditional purchase-only indexes.  In half of the areas covered, the series—which removes short sales and sales of bank-owned properties—shows lower appreciation over the last quarter than the purchase-only series.  During the last year, the share of Fannie Mae and Freddie Mac mortgages financing distressed sales has fallen in all but two areas covered by the FHFA indexes.

The complete list of state appreciation rates is on pages 14-15. The list of metropolitan area appreciation rates computed in a purchase-only series is on pages 29-31. Appreciation rates for the all-transactions metropolitan area indexes are on pages 35-48.


FHFA’s purchase-only and all-transactions HPI track average house price changes in either repeat sales or refinancings on the same single-family properties. The purchase-only index is based on more than 7 million repeat sales transactions, while the all-transactions index includes more than 51 million repeat transactions.  Both indexes are based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over the past 39 years.


  • The next monthly HPI report, which includes data through July 2014, will be released September 23, 2014.

  • The next quarterly HPI report, which will include data for the third quarter of 2014 and monthly data for September, will be released November 25, 2014.    

  • FHFA has published its 2015 House Price Index release dates.

  • Follow @FHFA on Twitter​ for updates on the FHFA House Price Index.   

  • The FHFA HPI has a new location on the website: www.fhfa.gov/hpi.

Link to Report



The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.6 trillion in funding for the U.S. mortgage markets and financial institutions.


Stefanie Johnson (202) 649-3030​ / ​Corinne Russell (202) 649-3032

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