Home prices in the U.S. came to a stop in their monthly growth in January for only the second time since 2012, according to the Federal Housing Finance Agency seasonally adjusted monthly House Price Index.

The HPI increased every month since early 2012, the only exception being November 2013 and now, January 2017, when home prices remained flat on a month-over-month basis.

However, while home prices remained flat from December, they still increased 5.7% from January 2016. Last month, the index showed rising interest rates had yet to take their toll on home prices, this month, however, seems to show home prices may have finally buckled.

Click to Enlarge

HPI

(Source: FHFA)

The FHFA monthly HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. Because of this, the selection excludes high-end homes bought with jumbo loans or cash sales.

For the nine census divisions, the price fluctuation in January ranged from a drop of 2% monthly in the East South Central division to an increase of 0.6% in the Pacific division. Annually, however, all changes were positive from an increase of 3.5% in the East South Central division to an increase of 8.3% in the Mountain division.

Here is a list of which states are in each of those divisions:

Pacific: Hawaii, Alaska, Washington, Oregon, California

Mountain: Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico

East South Central: Kentucky, Tennessee, Mississippi, Alabama

Most Popular Articles

Sales of new houses will rise to a 13-year high in 2020, NAR’s chief economist says

Sales of new homes probably will rise to a 13-year high in 2020 as the U.S. dodges a recession, according to Lawrence Yun, chief economist of the National Association of Realtors.

Nov 08, 2019 By

Latest Articles

RealPage: The size of the average U.S. household is growing

For the first time since 1850, the average size of the U.S. household is on the rise, RealPage says. And it’s not just the kids or Millennials, either. Households are becoming multi-generational.

Nov 12, 2019 By