what is hpi

The House Price Index (HPI) is a measure of the movement of single-family property prices in the United States. It is reported monthly and quarterly by the Federal Housing Finance Agency (FHFA) using data supplied by Fannie Mae and Freddie Mac. The HPI measures the price changes of residential housing as a percentage change from some specific start date, which has an HPI of 100. The index is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties in 363 metropolises. The HPI is one of many economic indicators that investors use to keep a pulse on broader economic trends and potential shifts in the stock market. The HPI is also used as an analytical tool for estimating changes in the rates of mortgage defaults, prepayments, and housing affordability.