Skip to main content

FHFA's House Price Index Sees Greatest Decline Since Q4 of 2008

NationalMortgageProfessional.com
May 25, 2011

U.S. house prices fell in the first quarter of 2011 according to the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only House Price Index (HPI). The HPI, calculated using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages, was 2.5 percent lower on a seasonally adjusted basis in the first quarter than in the fourth quarter of 2010. The unadjusted national decline was 3.5 percent. Over the past year, seasonally adjusted prices fell 5.5 percent from the first quarter of 2010 to the first quarter of 2011. FHFA’s seasonally adjusted monthly index for March was down 0.3 percent from its February value. The previously reported 1.6 percent decrease for February has been revised to a 1.5 percent price decline. The monthly index value for March was 19.8 percent below its peak value from April 2007. FHFA has implemented relatively minor changes in the way it calculates the national and Census Division price indexes. Although the changes do not produce systematically different estimates, for specific time periods—including the latest month and quarter—there are differences. For example, the estimated monthly change in U.S. prices (seasonally adjusted) for March would have been 0.0 percent under the old methodology, as opposed to -0.3 percent under the new approach. For the quarterly purchase-only index, the old approach would have yielded a change of -3.0 percent (seasonally adjusted)—a slightly larger decline than the 2.5 percent measured. “House prices in the first quarter declined in most parts of the country,” said Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco. “In many local real estate markets, particularly those hit hard by this cycle, foreclosures and other distressed properties are still a key factor in recorded and anticipated future sales and may be delaying price stability or recovery. Fortunately, serious delinquency rates also are declining.” FHFA’s all-transactions house price index, which includes data from mortgages used for both home purchases and refinancings, decreased 2.7 percent in the latest quarter and is down 3.1 percent over the four-quarter period. While the national, purchase-only house price index fell 5.5 percent from the first quarter of 2010 to the first quarter of 2011, prices of other goods and services rose 2.8 percent over the same period. Accordingly, the inflation-adjusted price of homes fell approximately 8.1 percent over the latest year. Significant by the FHFA report include: ►The seasonally adjusted purchase-only HPI declined in the first quarter in 43 states and the District of Columbia. ►Of the nine Census Divisions, the West South Central and Mountain Divisions experienced the most extreme price movements in the latest quarter. The Mountain Division experienced the largest decline, with a price drop of 3.4 percent. The strongest prices were in the West South Central Division, where prices declined only 0.5 percent. ►As measured with purchase-only indexes for the 25 most populated metropolitan areas in the U.S., four-quarter price declines were greatest in the Atlanta-Sandy Springs-Marietta, Ga. area. That area saw price declines of 13.5 percent between the first quarters of 2010 and 2011. ►Prices held up best in Pittsburgh where prices rose 0.2 percent over that period.
Published
May 25, 2011
Home Partners Of America Launches Choice Lease Program

Home Partners of America launched its Choice Lease program aimed at addressing the affordable housing crisis and mortgage access challenges, that are faced by low-to-moderate-income families and underrepresented communities.

Industry News
Jan 17, 2022
KBRA Assigns Preliminary Ratings To OBX 2022-NQM1 Trust

Kroll Bond Rating Agency assigned preliminary ratings to six classes of mortgage pass-through notes from OBX 2022-NQM1 Trust, a $556.7 million non-prime RMBS transaction.

Non-QM
Jan 17, 2022
Zillow: Black Mortgage Applicants Denied 84% More Often Than White

Zillow recently analyzed data from the Home Mortgage Disclosure Act and found that Black mortgage applicants are denied a mortgage 84% more often than white applicants.

Analysis and Data
Jan 13, 2022
Mortgage Economic Review January 2022

The Mortgage Economic Review is a monthly summary of Key Economic Indicators, Data, and Events pertinent to Mortgage and Real Estate Professionals.

Analysis and Data
Jan 13, 2022
Fairway Independent Mortgage Corp. Puts Employees' Health First

Fairway Independent Mortgage continues to allow its employees to choose whether to return to the office or not.

Industry News
Jan 12, 2022
First American Agrees To Acquire Mother Lode Holding Co.

Acquisition would expand First American’s footprint in 11 states

Industry News
Jan 12, 2022