Friday, May 23, 2008

1st Quarter HPI From The OFHEO

The Office of Federal Housing Enterprise Oversight (OFHEO) recently released their first quarter Housing Price Index (HPI). The index uses the same pairing method as the Case-Shiller index.


The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.The House Price Index is based on transactions involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac. Only mortgage transactions on single-family properties are included. Conforming refers to a mortgage that both meets the underwriting guidelines of Fannie Mae or Freddie Mac and that does not exceed the conforming loan limit, a figure linked to an index published by the Federal Housing Finance Board. The conforming loan limit for mortgages purchased in 2007 was $417,000.

The first graph is of the HPI since 1975.
Click on any graph for a sharper image.



The second graph shows the percent change from the same quarter in the prior year.


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