Fannie Mae’s Home Price Index showed quarter-over-quarter and year-over-year increases. According to the company, single-family home prices increased 5.3 percent from the third quarter of 2022 to the same quarter in 2023, up from the second quarter 2023’s revised annual growth rate of 2.9 percent.
“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said. “We’re now in the fourth quarter, when house price appreciation typically slows, and with interest rates both higher and more volatile, it would be reasonable to expect some additional slowing in price appreciation, but the ongoing supply problems continue to drive the larger affordability challenge.”
When seasonally adjusted, home prices rose 2 percent quarter-over-quarter, which was a slight deceleration from growth observed in the second quarter (2.1 percent). On a non-seasonally adjusted bases, home prices increased by 1.7 percent from the second quarter to the third quarter of this year.
The index measures the average, quarterly price change for all single-family properties, except condos. It is produced by aggregating county-level data that is representative of the housing market nationwide and is designed to serve as indicators of general single-family home price trends.
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