- Prior month 0.3%
Details of the report
US August FHFA house prices rise 0.3% as expected; annual growth slows to 2.4%
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House prices MoM: +0.3% vs +0.3% expected. Prior revised to +0.2% from +0.3%.
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House prices YoY: +2.4% vs +2.6% expected. Prior revised to +2.6% from +2.5%.
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House Price Index: 444.6 vs 443.5 expected. Prior revised to 443.5 from 443.2.
US home prices increased 0.3% in August, matching expectations, according to the Federal Housing Finance Agency. However, the downward revision to July and softer-than-expected annual increase take some of the strength out of the headline.
Prices were 2.4% above August 2025, below the 2.6% expected and July’s revised 2.6% pace. Prices are still rising nationally, but annual appreciation is moderating and regional performance remains uneven. The gains are also less than the inflation rate.
Regional monthly changes — August vs July:
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Pacific: −0.1% vs +0.5%.
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Mountain: +0.3% vs −0.8%.
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West North Central: +0.7% vs +0.5%.
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West South Central: +0.6% vs +0.2%.
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East North Central: +0.5% vs +0.1%.
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East South Central: +2.1% vs −0.8%.
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New England: −0.8% vs +0.2%.
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Middle Atlantic: 0.0% vs +1.3%.
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South Atlantic: −0.1% vs +0.3%.
Five of the nine regional divisions recorded monthly gains, three declined and one was unchanged. East South Central’s 2.1% rebound led the increases, while New England’s 0.8% decline was the largest drop.
All nine divisions remained higher from a year earlier. East North Central led at +4.4%, followed by Middle Atlantic at +4.3%. The Mountain division lagged at +0.5%, underscoring how little annual appreciation some markets are seeing.
Quick analysis: The monthly gain shows home prices remain supported, but the annual miss and downward July revision temper the message. For the Fed, this offers some evidence of moderating house-price pressure, although purchase prices do not feed directly into the shelter measures in consumer inflation. The softer details could marginally favor lower Treasury yields and a softer USD, but this report alone is unlikely to materially change rate expectations. The key question is whether monthly gains broaden or remain concentrated in a handful of regions.
What this report measures: The Federal Housing Finance Agency’s House Price Index (FHFA HPI) tracks changes in single-family home values. The monthly purchase-only series uses repeat sales of properties with mortgages purchased or securitized by Fannie Mae or Freddie Mac; monthly changes are seasonally adjusted and subject to revision. Traders monitor it for clues about housing conditions, household wealth and affordability.
Combined with the Case Schiller data, the housing prices are rising but not keeping up with inflation.
This article was written by Greg Michalowski at investinglive.com.