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According to Fannie Mae’s latest Home Price Index (FNM-HPI) reading, single-family home prices increased at an annualized rate of 19.4% in the second quarter of 2022, down slightly from the previous quarter’s upwardly revised 20.5%.
On a quarterly basis, home prices rose a seasonally adjusted 4.3% in the second quarter.
“Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said. “At the end of 2021 and extending into 2022, we believe many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation."
Duncan continued, "Given the sharp rise in mortgage rates since that time, and the resulting negative impact on affordability to potential homebuyers, we expect purchase demand to cool in the quarters ahead, and for home price appreciation to moderate as a result.”
The FNM-HPI is a national, repeat-transaction home-price index measuring the average quarterly price change for all single-family properties in the United States, excluding condos. The FNM-HPI is publicly available at the national level as a quarterly series with a start date of first quarter of 1975 and extending to the most recent quarter, the second quarter of 2022. Fannie Mae publishes the FNM-HPI approximately mid-month during the first month of each new quarter.