• Shelly Roark
  • News
  • Market Forecast: FHFA House Price Index, New Home Sales, and Existing Home Sales

Market Forecast: FHFA House Price Index, New Home Sales, and Existing Home Sales

  • August 21, 2017

Mortgage rates dropped last week to a post-election low.  This week will be a heavy housing week with reports on the Federal Housing Finance Association’s (FHFA) house price index, existing home sales, and new home sales.

The FHFA house price index surveys the change in the value of homes financed through conventional mortgages securitized through Freddie Mac and Fannie Mae.  In May, the index appreciated 0.4% month-over-month and 6.9% year-over-year.

New home sales count the sales of newly constructed homes.  New home sales are a major economic indicator, not just in housing but in construction job creation and the purchase of construction materials.  In June, new home sales improved to a level of 610,000.

Existing home sales or resales count the sales of previously constructed homes, condominiums, and co-ops.  Existing home sales make up the majority of real estate transactions.  In June, existing home sales declined 1.8% month-over-month, but improved 0.7% year-over-year, to a level of 5.520 million. 

Over the summer, home prices have continued to appreciate and time on the market has sped up.  The industry is facing limited inventory and builders are doing their best to replenish the supply to satisfy the demand.  Even with rising home values, mortgage rates remain historically low. 


Sources: Bloomberg, MarketWatch, Mortgage News Daily

Shelly Roark

NMLS # 207714

Shelly Roark

PHONE: 512-470-4808

CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).