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Dan Green

Dan Green

Homebuyer.com

Dan Green has helped millions of people achieve their American Dream of homeownership. Dan has developed dozens of tools, written thousands of mortgage articles, and recorded hundreds of educational videos. .

Dan Green

Dan Green

Homebuyer.com

Dan Green has helped millions of people achieve their American Dream of homeownership. Dan has developed dozens of tools, written thousands of mortgage articles, and recorded hundreds of educational videos. .

State College Home - House Price Index

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This article was checked for accuracy as of September 20, 2024. Learn more about our commitments to accuracy and your mortgage education in our editorial guidelines.

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Trusted Content

This article was checked for accuracy as of September 20, 2024. Learn more about our commitments to accuracy and your mortgage education in our editorial guidelines.

Updated: September 20, 2024

What is the House Price Index?

The House Price Index (HPI) is an economic indicator that tracks changes in home prices across the United States, based on purchases of the same home over time.

House Price Index: A Detailed Explanation

The House Price Index, developed by the Federal Housing Finance Agency (FHFA), measures the movement of single-family house prices in the U.S. It provides a broad understanding of the housing market’s current state and potential future trends.

By monitoring the HPI, first-time home buyers can determine whether it’s a good time to buy a home. The index helps identify whether the market favors buyers or sellers based on historical price trends and current values. The HPI is a useful tool for comparing current and past prices.

The House Price Index is also used to establish conforming mortgage loan limits, which are based on the annual Q3 change in HPI.

For more detailed information on the House Price Index, visit the FHFA’s official website.

How is the House Price Index Calculated?

The FHFA’s House Price Index is calculated using a weighted repeat-sales method. This method analyzes mortgage transaction data from Fannie Mae and Freddie Mac to track home value changes over time, focusing on properties with at least two successive sales. The index measures the price change of the same property over different periods, providing a realistic and consistent view of price movements in the housing market.

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House Price Index: Chart

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Data: Federal Housing Finance Agency. Do not reprint without permission.
U.S. Federal Housing Finance Agency, Purchase Only House Price Index for the United States [HPIPONM226S], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/HPIPONM226S, July 7, 2025.

Common Questions About the House Price Index

Why is the House Price Index important for first-time home buyers?

The House Price Index helps first-time buyers gain insight into the trends and direction of the national housing market. This insight can help buyers make informed decisions about when and where to purchase a property.

How often is the House Price Index updated?

The FHFA updates the House Price Index quarterly and annually, providing both a short-term and long-term view of housing market trends.

Can the House Price Index predict future home values?

While the House Price Index is a strong historical indicator, it should not be relied upon to predict future market direction.

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