Fannie Mae: Home Prices Rise in Third Quarter

(Image courtesy of Fannie Mae)

Fannie Mae’s latest Home Price Index showed single-family home prices were up 5.3% in Q3 from the same period last year.

That’s an increase from the previous quarter’s revised annual growth of 2.9%.

Prices were also up a seasonally adjusted 2% from Q2 to Q3 2023; the previous quarter showed a quarterly increase of 2.1%.

“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment–even though prices were still solidly higher this past quarter than a year earlier,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “We’re now in the fourth quarter, when house price appreciation typically slows, and with interest rates both higher and more volatile, it would be reasonable to expect some additional slowing in price appreciation, but the ongoing supply problems continue to drive the larger affordability challenge.”

The Home Price Index is produced by aggregating county-level data to create both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country and designed to serve as indicators of general single-family home price trends