Home Price Index Rises to 18-Month High
The Federal Housing Finance Agency (FHFA) reported Tuesday morning that U.S. home prices rose more than expected in October.
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The Federal Housing Finance Agency (FHFA) reported Tuesday morning that U.S. home prices rose 0.6% month-over-month in October. Compared with October 2013, the house price index has gained 4.5%. The index was unchanged for September.
The consensus estimate for October called for an increase of 0.2%.
The FHFA monthly index is calculated using purchase prices of houses with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The index is 5.1% below its April 2007 peak and roughly equivalent to its level in September 2005.
For the past 12 months, gains have been greatest in the Pacific states, up 6%, and the least in the Middle Atlantic states, which are up 0.8%. The index rose in all nine Census Bureau divisions.
The October index value has reached an 18-month high of 215.4.
Home prices posted month-over-month gains in six Census Bureau divisions and declines in three.
ALSO READ: Mortgage Loan Rates Drop to 18-Month Low
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
