FHFA purchase-only House Price Index rises in March, home prices likely to continue rising in 2017

The FHFA purchase-only House Price Index for the U.S. rose in March, coming in slightly above consensus expectations. The index rose 0.6 percent on a sequential basis, as compared with the consensus estimate of 0.5 percent. On a year-on-year basis, the index rose strongly by 6.2 percent.

The FHFA index’s monthly growth has rebounded notably since the low touched in January. The report released today continues to be in line with trends in other home price indices that show annual home price appreciation in the range of 5 percent to 6 percent since 2015. According to a Barclays research report, home prices are expected to continue appreciating at a stable rate this year.

Region wise, it was a mix bag. Out of nine regions, prices rose in five regions, with the largest rises coming from Pacific and South Atlantic. Meanwhile, the price declines throughout regions were modest, in the range of -0.1 percent to -0.6 percent.