US FHFA House Prices Rise 0.3% in August, Annual Pace Eases to 2.4%

• The previous month's reading was +0.3%.

The August report details are as follows:

In August, US FHFA home prices advanced 0.3%, meeting expectations, and the year-over-year rate decelerated to 2.4%.

• The month-over-month change was +0.3%, matching the 0.3% forecast. July's figure was revised from +0.3% to +0.2%.

• Year-over-year, prices grew 2.4%, below the 2.6% expectation. The July annual rate was revised to 2.6% from 2.5%.

• The House Price Index came in at 444.6, compared to the expected 443.5. July's index was revised up to 443.5 from 443.2.

According to the Federal Housing Finance Agency, US home prices rose 0.3% in August, in line with forecasts. However, the July data was revised lower and the annual gain was weaker than anticipated, which reduces the headline's impact.

Prices were 2.4% higher than in August 2025, missing the 2.6% estimate and lagging July's revised 2.6% rate. While national prices continue to climb, annual appreciation is slowing and regional results vary. The increases also trail the inflation rate.

Regional month-over-month changes for August vs July are shown below:

• The Pacific region declined 0.1%, compared to a 0.5% gain in July.

• The Mountain region rose 0.3%, reversing a 0.8% drop.

• West North Central increased 0.7%, up from 0.5%.

• West South Central advanced 0.6%, after a 0.2% rise.

• East North Central gained 0.5%, following a 0.1% increase.

• East South Central surged 2.1%, recovering from a 0.8% decline.

• New England fell 0.8%, after a 0.2% uptick.

• The Middle Atlantic region was flat, versus a 1.3% gain previously.

• South Atlantic edged down 0.1%, compared to a 0.3% increase.

Out of the nine divisions, five posted monthly gains, three saw declines, and one was flat. The East South Central division led with a 2.1% rebound, and New England had the largest drop at 0.8%.

All nine regions were still above year-ago levels. The strongest annual growth was in East North Central at 4.4%, with Middle Atlantic close behind at 4.3%. The Mountain region had the weakest at 0.5%, highlighting the limited appreciation in some areas.

Analysis: The monthly increase indicates continued support for home prices, but the weaker annual data and July revision soften the narrative. For the Federal Reserve, this provides some signs of easing house-price pressure, though purchase prices don't directly affect the shelter component of CPI. The softer details could slightly push Treasury yields down and weaken the dollar, but this single report is unlikely to significantly shift rate expectations. The main question is whether monthly gains will widen across regions or stay limited to a few.

The FHFA House Price Index tracks movements in single-family home values. The monthly purchase-only index is based on repeat sales of homes with mortgages securitized by Fannie Mae or Freddie Mac, and the data is seasonally adjusted and subject to revision. Traders follow it for indications of housing market conditions, household wealth, and affordability.

Together with Case-Shiller data, the report shows that home prices are increasing but not matching the inflation rate.