Freddie Mac has announced the results of its second quarter Conventional Mortgage Home Price Index (CMHPI). The Conventional Mortgage Home Price Index (CMHPI) Purchase-Only Series for the United States registered a 3.1 percent (13.2 percent annualized) increase in the second quarter relative to the first quarter on a not-seasonally-adjusted basis. U.S. home values fell 0.2 percent relative to the second quarter a year ago.
Home values rose in all nine Census Divisions. This is the first time since the second quarter of 2009 that all Census Divisions have witnessed positive changes in home values. The revised change in home values for the first quarter of 2010 is a decrease of 2.3 percent (-8.9 percent annualized) relative to the fourth quarter of 2009 and a decrease of 1.3 percent relative to the first quarter of 2009.
"We saw increases in home values in the second quarter that were very strong across all regions—there is no doubt that some of this was due in part to the now-expired homebuyer tax credits which boosted sales activity as well as to the usual seasonal bump we see each Spring," said Amy Crews Cutts, Freddie Mac deputy chief economist. "Although the homebuyer tax credit programs have expired, 30-year fixed mortgage rates have decreased by more than half a percentage point since the end of April, setting multiple new record lows according to Freddie Mac's Primary Mortgage Market Survey. We will be watching carefully the home sales reports in August and September to see whether the July drop was the start of a new trend down or the result of a temporary pull-forward due to the tax-credit programs."
The CMHPI Classic Series, which includes data on both home purchase values and appraisals, indicated that average U.S. home values fell 0.5 percent (-1.8 percent annualized) during the second quarter. Comparing the second quarter of 2010 with the second quarter of 2009, the Classic Series shows 4.6 percent depreciation.
The CMHPI Purchase-Only Series had the following regional house-price changes:
►East North Central Division (IL, IN, MI, OH, WI): rose 4.9 percent (21.2 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values decreased 1.7 percent, and during the last five years, home values decreased 7.4 percent.
►West North Central Division (IA, KS, MN, MO, ND, NE, SD): increased 4.2 percent (17.9 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values were unchanged; over the last five years, home values increased 0.7 percent.
►Mountain Division (AZ, CO, ID, MT, NM, NV, UT, WY): increased 3.7 percent (15.9 percent, annualized) in the second quarter of 2010. In the last 12 months, home values decreased 3.8 percent; during the last five years, home values declined 5.2 percent.
►South Atlantic Division (DC, DE, FL, GA, MD, NC, SC, VA, WV): grew 3.6 percent (15.1 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values decreased 2.6 percent, and during the last five years, home values fell 5.8 percent.
►Pacific Division (AK, CA, HI, OR, WA): climbed up 3.1 percent (13.1 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values increased 4.2 percent, and during the last five years, home values have decreased 14.7 percent.
►East South Central Division (AL, KY, MS, TN): grew 2.8 percent (11.8 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values decreased 1.0 percent, and during the last five years, home values increased 8.8 percent.
►West South Central Division (AR, LA, OK, TX): rose 2.7 percent (11.4 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values increased 1.2, and during the last five years, home values increased 16.6 percent.
►New England Division (CT, MA, ME, NH, RI, VT): increased 1.3 percent (5.3 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values decreased 1.6 percent, and during the last five years, home values declined 9.0 percent.
►Middle Atlantic Division (NJ, NY, PA): increased 0.6 percent (2.6 percent, annualized) in the second quarter of 2010. Over the last 12 months, home values increased 1.0 percent, and during the last five years, home values increased 7.1 percent.
For more information, visit www.freddiemac.com.
