According to the latest Fannie Mae Home Price Index, between the first quarter of 2023 and the first quarter of 2024 a year later single-family home prices increased 7.4%, above their prior predictions and the previous quarter’s revised annual growth rate of 6.6%.
On a quarterly basis, home prices rose a seasonally adjusted 1.7% in Q1 2024, essentially the same as the growth in Q4 2023. On a non-seasonally adjusted basis, home prices also increased by 1.7% in Q1 2024.
“Home prices continued to rise in the first quarter as the housing market remained seriously supply constrained,” said Doug Duncan, Fannie Mae SVP and Chief Economist. “The stabilization of mortgage rates in the 6.6% to 6.7% range in January helped to boost demand early in the first quarter, with existing home sales and mortgage applications both rising. Mortgage rates have trended upward again of late, but there is support for home prices in strong demographic demand from younger generations. We expect home sales to rise modestly this year as potential homebuyers appear to be acclimating to the higher-rate environment and, in some cases, may be less able to put off moving for life reasons.”
About the Fannie Mae Home Price Index (FNM-HPI)
The FNM-HPI is produced by aggregating county-level data to create both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country and designed to serve as indicators of general single-family home price trends. The FNM-HPI is publicly available at the national level as a quarterly series with a start date of Q1 1975 and extending to the most recent quarter, Q1 2024. Fannie Mae publishes the FNM-HPI approximately mid-month during the first month of each new quarter.
