U.S. house prices were up by 1.6 percent during the second quarter, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI)
. On a year-over-year basis, house prices rose 6.6 percent from the second quarter of 2016. FHFA's seasonally adjusted monthly index for June was up 0.1 percent from May.
The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. FHFA has produced a video of highlights for this quarter.
"U.S. house prices rose in most states during the second quarter," said FHFA Senior Economist William Doerner. "New home sales are climbing but, relative to the overall population, they still remain low from a historical perspective. The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years."
During the second quarter, home prices increased in 48 states and the District of Columbia on a year-over-year basis, with the greatest annual appreciation occurring in Washington (12.4 percent), Colorado (10.4 percent) and Idaho (10.3 percent). Among the major metro areas, Washington’s Seattle-Bellevue-Everett experienced the greatest annual prices increase with a 15.7 percent upward jolt, while Connecticut’s New Haven-Milford had the most anemic increase at a scant 0.1 percent.