Fannie Mae announced the external publication of its Fannie Mae Home Price Index, which measures the average, quarterly price change for all single-family properties in the United States excluding condos, on a quarterly basis. 

The first edition, published last week, measured home price growth at an annual rate of 20% in the first quarter, its “fastest annual pace in the 47-year history of the index,” up from the 19.1 percent annual rate recorded in Q4 2021. 

On a quarterly basis, home prices rose a seasonally adjusted 4.8 percent in Q1 2022.

The GSE has been using the index for internal reporting purposes before deciding to launch externally, chief economist Doug Duncan said in a statement.

“After decelerating toward the end of 2021, the FNM-HPI sped up in the first quarter due to continued strong homebuying demand and a lack of inventory. We believe recent homebuying demand was augmented by many homebuyers pulling forward their home purchase plans in anticipation of rising mortgage rates. Now, with rates having sharply risen since the start of the year – and some of that homebuying demand now met – we expect price growth to begin cooling as the year progresses,” Duncan said. 

The FNM-HPI aggregates 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.

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