House prices in the U.S. were unchanged in February, but rose 1.7% from February 2025 to February 2026.
That’s according to the U.S. Federal Housing (FHFA) seasonally adjusted monthly House Price Index (FHFA HPI). FHFA reported that the previously reported 0.1% price change in January was revised upward to 0.2%.
According to FHFA, for the nine census divisions, seasonally adjusted monthly home price changes ranged from -1.1% in the Mountain division to +0.6% in the South Atlantic division. The 12-month changes ranged from -0.7% in the Mountain division to +4.2% in the Middle Atlantic division.
The FHFA HPI is a comprehensive collection of publicly available house price indices that measure changes in single-family home values based on data that extend back to the mid-1970s from all 50 states and over 400 American cities.
It incorporates tens of millions of home sales and offers insights about house price changes at the national, census division, state, metro area, county, ZIP code, and census tract levels, FHFA said. The agency said it uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.
The HPI data and reports are issued quarterly and monthly. The flagship FHFA HPI uses seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac.
FHFA said that additional indices use other data, including refinances, mortgages insured by the Federal Housing Administration, and real property records.
‘Cooling Market’
Bankrate Senior Economic Analyst Mark Hamrick called it a “cooling market.”
“Cooling in home prices nationally should offer some breathing room for prospective buyers currently sidelined by affordability challenges,” Hamrick said. “Both the FHFA and S&P CoreLogic Case-Shiller reports for February confirm a cooling trend at the national level, with annual gains slowing compared to this time last year.”
Hamrick noted that the February data reveals a wealth erosion factor.
“For existing homeowners, the outlook is more sobering. On a national basis, home equity is now losing ground against inflation. The February data reveals a critical tipping point: more than half of major U.S. metropolitan markets now post year-over-year price declines,” Hamrick said. “This broadening slowdown signifies that the correction is no longer localized to just a few pandemic-era ‘hot spots.'”
Hamrick also noted that the data highlights a significant regional divergence.
“The 7-percentage-point spread between a price gainer like Chicago (+5.0%) and a decliner like Denver (-2.2%) illustrates a housing market of winners and losers,” Hamrick said. “With inflation-adjusted home values declining for nearly a year, most homeowners are no longer building customary wealth through their primary residence. Instead, they are navigating a squeeze.”
Cutting Discretionary Spending
Hamrick said that surging consumer prices, exacerbated by global energy shocks, are causing families to cut discretionary spending just to maintain necessities, while housing costs consume a historically disproportionate share of the household budget.
“There is a minor silver lining in borrowing costs. Mortgage rates are lower on average than they were one year ago,” Hamrick said. “The latest Bankrate national average (BRM) for the 30-year fixed is at 6.34%. Borrowers with superior credit scores remain best positioned to lock in rates significantly below the current national average.”
The next HPI report will be released on May 26, and will include monthly data through March and quarterly data through the first quarter of 2026.
The FHFA regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks.
