House Price Index - HPI

AAA

DEFINITION of 'House Price Index - HPI'

A broad measure of the movement of single-family house prices in the U.S. Apart from serving as an indicator of house price trends, the House Price Index (HPI) provides an analytical tool for estimating changes in the rates of mortgage defaults, prepayments and housing affordability. The HPI is published by the Federal Housing Finance Agency (FHFA) using data supplied by Fannie Mae and Freddie Mac.

INVESTOPEDIA EXPLAINS 'House Price Index - HPI'

The HPI is based on transactions involving conventional and conforming mortgages - only on single-family properties - that have been purchased or securitized by Fannie Mae or Freddie Mac. It is a weighted, repeat-sales index, which means that it measures average price changes in repeat sales or refinancings on the same properties. A comprehensive HPI report is published every quarter, while a monthly report has been published from March 2008.


The HPI differs from the well-known S&P/Case-Shiller Home Price Indexes in a number of ways. For example, while the Case-Shiller indexes only use purchase prices, the all-transactions HPI also includes refinance appraisals.

RELATED TERMS
  1. Affordability Index

    A measure of a population's ability to afford to purchase a particular ...
  2. S&P/Case-Shiller U.S. National ...

    An index that measures the change in value of the U.S. residential ...
  3. Foreclosure Prevention Act of 2 ...

    A housing act that is designed to help families keep homes that ...
  4. Fannie Mae - Federal National Mortgage ...

    A government-sponsored enterprise (GSE) that was created in 1938 ...
  5. Freddie Mac - Federal Home Loan ...

    A stockholder-owned, government-sponsored enterprise (GSE) chartered ...
  6. S&P/Case-Shiller Home Price Indexes

    A group of indexes that tracks changes in home prices throughout ...
Related Articles
  1. Credit & Loans

    House Price Vs. Interest Rate: Which Is More Important?

    Deciding which factor is more important can make a difference in monthly payments, ability to move and Homowners Association fees.
  2. Economics

    Is there a correlation between inflation and house prices?

    There is a correlation between inflation and house prices - in fact there are correlations between inflation and any good with a limited supply. To illustrate, consider an economy that has a ...
  3. Options & Futures

    REX Agreements Climb As House Prices Decline

    These purchase options let you hedge against a decline in your home's value without having to sell the house.
  4. Personal Finance

    Analyzing A REX Agreement

    These contracts can be an effective way for homeowners to hedge against declining house prices.
  5. Trading Strategies

    What is a common strategy traders implement when using the Parabolic Indicator?

    Learn a simple trading strategy designed for use with the parabolic SAR indicator, and understand the purpose for which the parabolic SAR is designed.
  6. Forex Strategies

    How do I use a Parabolic Indicator to create a forex trading strategy?

    Learn more about how the parabolic indicator, also known as the parabolic SAR, can be used by forex traders to create trailing stop-loss strategies.
  7. Trading Strategies

    What are the best technical indicators to complement the Parabolic Indicator?

    Learn about two of the best technical indicators recommended for traders to use to refine a trading strategy based on the parabolic SAR indicator.
  8. Technical Indicators

    What is the Double Exponential Moving Average (DEMA) formula and how is it calculated?

    Discover the equation for double exponential moving average, or DEMA, and learn how it is calculated for a better understanding of how it works.
  9. Forex Strategies

    How do I use Mass Index for creating a forex trading strategy?

    Discover how forex traders can use Donald Dorsey's mass index to spot possible reversals in the price action trends of currency pairs.
  10. Trading Strategies

    What are the main differences between Money Flow & Money Flow Index (MFI)?

    Find out how to differentiate between standard money flow and the Money Flow Index, two methods of expressing the strength behind a security's price trend.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center