House Price Index - HPI


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.

BREAKING DOWN '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.

  1. Affordability Index

    A measure of a population's ability to afford to purchase a particular ...
  2. Fannie Mae - Federal National Mortgage ...

    A government-sponsored enterprise (GSE) that was created in 1938 ...
  3. S&P/Case-Shiller Home Price Indexes

    A group of indexes that tracks changes in home prices throughout ...
  4. Foreclosure Prevention Act of 2 ...

    A housing act that is designed to help families keep homes that ...
  5. S&P/Case-Shiller U.S. National ...

    An index that measures the change in value of the U.S. residential ...
  6. Freddie Mac - Federal Home Loan ...

    A stockholder-owned, government-sponsored enterprise (GSE) chartered ...
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. Personal Finance

    Analyzing A REX Agreement

    These contracts can be an effective way for homeowners to hedge against declining house prices.
  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. Stock Analysis

    How Yelp Adds Value to Local Businesses

    Understand how the Yelp platform operates and how it adds value to the business world. Learn about the top five ways Yelp helps small businesses.
  5. Stock Analysis

    Top 4 Companies Owned by Yahoo

    Understand Yahoo's acquisition strategies and how the company has been able to make so many acquisitions. Learn about the top companies owned by Yahoo.
  6. Economics

    The Effect of Fed Fund Rate Hikes on Gold

    Explore the historical relationship between interest rate increases and the price of gold, and consider what effect a fed funds rate hike might have on gold.
  7. Stock Analysis

    YouTube Vs. Vimeo: Which One Should You Choose?

    Understand why online videos have become popular and how platforms are capitalizing on the trend. Learn about the differences between YouTube and Vimeo.
  8. Fundamental Analysis

    The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  9. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  10. Investing

    Latin America’s Economic Forecast

    After a ten-year run, the economies of Latin America are in a decline. For sustainable, long-term growth, the region needs structural reforms.
  1. 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 ... Read Full Answer >>
  2. Does working capital measure liquidity?

    Working capital is a commonly used metric, not only for a company’s liquidity but also for its operational efficiency and ... Read Full Answer >>
  3. Can working capital be negative?

    Working capital can be negative if a company's current assets are less than its current liabilities. Working capital is calculated ... Read Full Answer >>
  4. How do hedge funds use equity options?

    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
  5. Are Cafeteria plans taxable?

    Whether the benefits you receive through your employer-sponsored cafeteria plan are taxable depends entirely on which benefits ... Read Full Answer >>
  6. Can mutual funds only hold stocks?

    There are some types of mutual funds, called stock funds or equity funds, which hold only stocks. However, there are a number ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Real Estate Investment Trust - REIT

    A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges ...
  2. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  3. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  4. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  5. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  6. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!