Home prices grew but at a slower pace in the second quarter of 2018 according to the Federal Housing Finance Agency (FHFA). Giving an indication of housing market trends during the period, the FHFA's House Price Index for Q2 indicated that while house prices rose 6.5 percent from the second quarter of 2017 to the second quarter of 2018, its monthly index for June was up only 0.2 percent from May.
The FHFA calculates its HPI using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.
The data indicated that while home prices rose in all 50 states and the District of Columbia during the period, Nevada, with a 17 percent growth, Idaho (13 percent), District of Columbia 911.8 percent), Utah (11.3 percent), and Washington (11 percent) all showed double-digit growth in home prices.
The states showing the smallest annual appreciation were, North Dakota (2.1 percent), Louisiana (2.3 percent), West Virginia (2.3 percent), Connecticut (2.4 percent), and Alaska (2.6 percent).
“Home prices rose in the second quarter but at a slower pace than we have seen for the past four years,” said Dr. William Doerner, Supervisory Economist at the FHFA. “Mortgage rates have increased by more than half a percentage point over the first six months of the year. Rates are still inexpensive from a historical standpoint, but their bump-up appears to have gently pressed the brakes on house price increases.”
Watch this video to learn more about the movement and trends indicated by the FHFA HPI in the second quarter: