What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Conquering the Mortgage Lender’s Dilemmas

This webinar provides a roadmap for creating a sophisticated, digital-first cost improvement strategy to maximize profits by reducing high processing environments.

HW's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

We need higher mortgage rates to cool the housing market

2020-2024 will have the best housing market demographics and the lowest mortgage rates ever recorded, which could accelerate real home prices too quickly.

Real Estate

FHFA: Home prices continue soaring to new highs

Increase 0.7% in April

Home prices increased once again in April, up from the previous month and previous year, according to the House Price Index released by the Federal Housing Finance Agency.

Home prices increased 0.7% month-over-month in April, FHFA’s seasonally adjusted index showed. This marks an increase of 6.8% annually. And the previous month’s reported 0.6% increase was revised upward to reflect a 0.7% increase in home prices.

This chart shows the solid trend of increasing home prices since early 2012, and the point where home prices surpassed their previous peak in 2016:

Click to Enlarge

HPI

(Source: FHFA)

And the FHFA report isn't the only one reporting increaing home prices. The existing home sales report, released Wednesday by the National Association of Realtors, shows the median home price for existing home sales increased to a new high in May.

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.

Regionally, adjusted monthly price changes from March to April ranged from a decrease of 0.1% in the East South Central division to an increase of 1.6% in the West South Central division. On a year-over-year basis, the changes ranged from an increase of 4.7% in the West North Central division to an increase of 8.9% in the Mountain division.

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

East South Central: Kentucky, Tennessee, Mississippi, Alabama

West South Central: Oklahoma, Arkansas, Texas, Louisiana

West North Central: Michigan, Wisconsin, Illinois, Indiana, Ohio

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

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