Home Prices Rose 6.9% Year Over Year in Q2—Down from 7.3% in Q1

Fannie Mae has released its quarterly Home Price Index (FNM-HPI) report, showing a 6.9% annual increase in single-family home prices for the second quarter of 2024. 

That’s down from the previous quarter’s revised annual growth rate of 7.3%. 

Home prices increased on a quarterly basis by a seasonally adjusted 1.3%, down from the revised quarterly growth rate of 2.0% in Q1 2024. On a non-seasonally adjusted basis, home prices rose by 3.0% from the previous quarter in Q2. 

Home prices rose again in the second quarter, but the pace of growth slowed as important elements of housing demand and supply inched closer together. Elevated mortgage rates and ongoing affordability constraints are increasingly limiting homebuyer demand and thus dampening the pace of home price appreciation. Meanwhile, the number of homes available for sale is rising in many metro areas, which is also dampening home price growth. While we expect home price growth to decelerate further in the coming quarters, a still-tight inventory of homes for sale and stretched affordability remain significant challenges and, in our view, are likely to constrain mortgage demand and home sales for the foreseeable future.

Doug Duncan

Fannie Mae Chief Economist

Fannie Mae HPI

The Fannie Mae Home Price Index (FNM-HPI) measures the average quarterly price change for all single-family homes (except condos) nationwide. 

The FNM-HPI is created by aggregating county-level data to produce national indices, both seasonally adjusted and non-adjusted, that reflect overall single-family home price trends across the U.S. 

This index is publicly available every quarter, starting from the first quarter of 1975 up to the latest quarter, Q2 2024. 

Fannie Mae releases the FNM-HPI around the middle of the first month of each new quarter.