Home Prices Show Signs of Slowing with a 3 Percent Increase in Q2 2024

Original Source Fannie Mae

The latest reading from Fannie Mae's Home Price Index (FNM-HPI) indicates a 6.9 percent increase in single-family home prices from Q2 2023 to Q2 2024. This growth is slightly down from the 7.3 percent annual increase reported in the previous quarter. On a quarterly basis, home prices rose by a seasonally adjusted 1.3 percent in Q2 2024, compared to a revised 2.0 percent growth in Q1 2024. Non-seasonally adjusted, home prices saw a 3.0 percent increase in Q2 2024.

Analysis from Fannie Mae

“Home prices continued to rise in the second quarter, but the pace of growth slowed as housing demand and supply factors started to balance,” said Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae. “Higher mortgage rates and affordability challenges are limiting homebuyer demand, which is slowing the pace of home price appreciation. Additionally, an increase in homes available for sale in many metro areas is contributing to this deceleration.”

About the FNM-HPI

The FNM-HPI is a national, repeat-transaction home price index that measures the average quarterly price change for single-family properties in the U.S., excluding condos. It aggregates county-level data to create both seasonally adjusted and non-seasonally adjusted national indices, representing general single-family home price trends. The FNM-HPI has been publicly available since Q1 1975, with the latest data reflecting Q2 2024.

Understanding the Data

Fannie Mae's home price estimates are based on preliminary data and are subject to change as new information becomes available. The analyses and forecasts by Fannie Mae's Economic & Strategic Research (ESR) Group reflect the group's views as of the publication date and are based on reliable information. However, they do not guarantee the accuracy or suitability of the information for any specific purpose.

MLOs, Get a Better Compensation Plan

Interested in competitive mortgage compensation plans? Explore Innovative Mortgage's Compensation Plans and discover how we can help you achieve your financial goals.