The HPI published by the Federal Housing Finance Agency (FHFA) is a specialized index for measuring changes in home prices. This HPI provides a reliable estimate for average prices and home appreciation, but may not be as specific as other indices.
How do you use Home Price Index?
Here's an example: If a homeowner takes out a $200,000 mortgage to buy a home in 2015 and then a new buyer takes out a mortgage of $225,000 to purchase the same property in 2020, the HPI will track that increase and factor into its overall house price index.
What is real house price index?
The First American Real House Price Index (RHPI) measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time and across the United States at the national, state and metropolitan area level.
How do you use the housing price index?
The HPI is based on transactions involving conventional and conforming mortgages on single-family properties. It is a weighted repeat sales index, measuring average price changes in repeat sales or refinancings on the same properties.
How is HPI calculated?
1) The FHFA HPI is based on repeat transactions. That is, the estimates of appreciation are based on repeated valuations of the same property over time. Therefore, each time a property "repeats" in the form of a sale or refinance, average appreciation since the prior sale/refinance period is influenced.
How are house prices measured?
The House Price Index (HPI) is a broad measure of the movement of single-family house prices in the United States. It is published by the Federal Housing Finance Agency (FHFA), using monthly and quarterly data supplied by Fannie Mae and Freddie Mac.
How reliable is house price index?
The HPI only looks at existing single-family homes, so it won't be affected by new construction, condos or apartments. This HPI provides a reliable estimate for average prices and home appreciation, but may not be as specific as other indices.