FHFA Home Price Index Retreats From Record High in April

The FHFA House Price Index slipped 0.1% in April to 441.4, down from a revised 441.5 in March. The index remains just 0.1% below its all-time high.

The FHFA index tracks single-family home prices on loans backed by Fannie Mae and Freddie Mac. It is a lagging but broad measure of U.S. home values.

Mortgage rates for a 30-year fixed loan have stayed above 7% since late 2023, according to Freddie Mac data. The Federal Reserve is expected to hold its benchmark rate steady at the June meeting. Traders in fed funds futures see the first rate cut arriving in September, per CME FedWatch.

The April decline aligns with other housing data. The S&P CoreLogic Case-Shiller national index fell 0.2% month-over-month in March, a separate report showed earlier this month. Both indices recorded declines after months of gains.

For homebuilders, the data shows prices stalling after a long run-up. Builders have offered mortgage rate buydowns and other incentives to move inventory. The FHFA print does not change that calculus.

The next FHFA release, covering May data, is scheduled for late July. A second consecutive decline would be the first back-to-back drop since late 2022. A rebound to a new high would suggest the April dip was noise.

Read our earlier analysis of the April home price dip for more context on the broader trend.