FHFA Sees Yearly House Price Depreciation Slow
Purchase-only house prices across the US fell 0.7% in Q209 since Q109 as year-on-year price depreciation shows signs of slowing, according to the Federal Housing Finance Agency (FHFA). The slight quarterly decline came in 20bps above the 0.5% decline seen in the previous quarterly period. Year-on-year purchase prices slipped 6.1%, based on the FHFA's analysis of sales price information provided by mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE). It marks a slight improvement from the 7.1% depreciation seen from Q108 to Q109. “For the second consecutive quarter we are seeing much slower rates of depreciation in the HPI than in 2008,” said FHFA senior deputy director and chief operating officer Edward DeMarco. “This is further evidence that prices may be stabilizing for the nation as a whole.” FHFA's all-transactions index, which includes data from both purchase mortgages and refinancings, slipped 2.4% since Q109 but only 4% from the year-ago period. The New England division experienced the worst (-1.6%) quarterly price decline, while the West South Central division fared the best (0.2%). Write to Diana Golobay.