Home Prices Continue to Climb in Early 2024
The start of 2024 has seen an encouraging uptrend in the housing market, with single-family home prices marking a significant increase. The latest insights from Fannie Mae’s Home Price Index (FNM-HPI) reveal a 7.4 percent year-over-year growth in the first quarter of 2024 compared to the same period in 2023. This rise builds upon the previous quarter’s revised annual growth rate of 6.6 percent, signaling a steady upward trajectory in home values across the nation. Specifically, the first quarter of 2024 has witnessed a seasonally adjusted increase of 1.7 percent in home prices, mirroring the growth rate of the final quarter of 2023. Even on a non-seasonally adjusted basis, the increment stands at 1.7 percent for the first quarter of 2024.
“The housing market remains seriously supply-constrained, pushing home prices upward in the first quarter,” remarked , Fannie Mae Senior Vice President and Chief Economist. The stable mortgage rates, hovering between 6.6 to 6.7 percent at the beginning of January, played a significant role in rejuvenating demand. This stabilization has led to an uptick in existing home sales and mortgage applications. However, as mortgage rates have begun to climb once again recently, the support for home prices now heavily leans on the robust demographic demand, particularly from younger generations. The market predicts a modest rise in home sales throughout the year, driven by potential buyers adjusting to the new norm of higher mortgage rates and moving forward with their life plans despite financial constraints.
Fannie Mae’s Home Price Index (FNM-HPI) serves as a comprehensive measure of average, quarterly price changes in single-family properties across the nation, excluding condos. The index provides both seasonally adjusted and non-seasonally adjusted insights to represent national home price trends accurately. Publicly available as a quarterly series since Q1 1975, the FNM-HPI continues to extend valuable data for market participants and policymakers alike. The index aims to facilitate informed decisions by offering a detailed view of the general trends in single-family home prices.
For individuals and professionals keen on staying updated with future FNM-HPI updates and other housing market research, Fannie Mae’s Economic & Strategic Research Group provides a wealth of information and analysis. Despite the comprehensive data and forward-looking statements provided, it’s important to note that these insights are subject to change as new data emerges. The analyses and forecasts are based on current and historical trends, consumer and mortgage lender surveys, and a series of assumptions that could evolve over time.
The Economic and Strategic Research Group at Fannie Mae, led by the acclaimed Chief Economist , is committed to delivering accurate and detailed economic, housing, and mortgage market forecasts. Awarded for their forecast accuracy, the team continues to contribute valuable insights that help shape the understanding of market dynamics and future developments.
As a cornerstone of the American housing finance system, Fannie Mae plays a pivotal role in providing equitable and sustainable access to homeownership and quality, affordable rental housing. By enabling the 30-year fixed-rate mortgage and promoting responsible innovation, Fannie Mae remains at the forefront of efforts to make the home buying and renting process more accessible and equitable for people across the country.
In navigating the ever-evolving landscape of the housing market, understanding the dynamics of home prices is crucial for both current and potential homeowners. The latest trends outlined by the FNM-HPI indicate a housing market that is gradually adjusting to economic pressures while maintaining its growth trajectory, underpinned by solid demand and the continued support of key financial institutions like Fannie Mae.
