Single-family home prices in the United States increased at a non-seasonally adjusted annual rate of 9.2% in Q4 2022, according to the latest Home Price Index (FNM-HPI) reading from Fannie Mae. This marks a decrease from the previous quarter’s annual growth rate of 13.1%.
On a quarterly basis, home prices rose a seasonally adjusted 0.2%, just above the 0.1% growth seen in the previous quarter. However, on a non-seasonally adjusted basis, home prices declined by 1.0% in Q4 2022.
Mark Palim, Fannie Mae vice president and deputy chief economist, attributes the recent decline in home prices to the rise in mortgage rates over the past year and record inflation, which has constrained the purchasing power of prospective homebuyers.
