Freddie Mac: HERS Rated Homes Sell for More – NMP Skip to main content

Freddie Mac: HERS Rated Homes Sell for More

Nov 08, 2019

A new study conducted by Freddie Mac determined that homes rated under RESNET’s Home Energy Rating System (HERS) between 2013 and 2017 sold on an average 2.7 percent more than comparable unrated homes.
 
The study “Energy Efficiency: Value Added to Properties & Loan Performance” also found that homes receiving lower HERS Index Scores sold for 3 percent to 5 percent more than homes with higher HERS Index Scores, and that buyers of HERS rated homes also have more desirable mortgage profiles than their counterparts seeking out unrated property.
 
The study was based on a random sampling of about 70,000 HERS rated homes, with credit bureau data on each of these homes plus five comparable unrated homes for each rated home, with a total of about 450,000 properties being analyzed. The report stated Freddie Mac “conducted this analysis to understand the value and the loan performance associated with energy-efficient homes to support the consideration of energy efficiency in mortgage underwriting practices.”

 
 
 
About the author
Published
Nov 08, 2019
Rocket Pro Launches ‘Moving Squad’ To Recruit Brokers From UWM

Rocket is offering partners up to $10,000 to help bring UWM brokers onto its platform

Sep 01, 2026
NEXA, UMortgage Leaders Explain What Drove Acquisition

Kortas relinquishes the CEO title, elevating Casa to co-equal "executive partner"

Aug 31, 2026
Warsh Sees Housing Strain, Keeps Rate Hikes In Play

Fed chair says broader financial conditions remain loose, inflation is too high, and markets should expect less guidance on what comes next

Aug 31, 2026
July CPI Eases Mortgage-Rate Risk, But Doesn’t Promise Relief

Consumer inflation rose just 0.1% in July, reducing pressure for a September Fed rate hike as mortgage rates remain near their highest levels of the year

Aug 13, 2026
The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Jul 30, 2026
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Jul 15, 2026