House prices in the US are rising faster than expected
Pandemic has supported the market
House prices continue to soar in the United States. The FHFA house price index rose 1.5 percent in October compared to the previous month, as the Federal Housing Finance Agency (FHFA) announced on Wednesday in New York. The market was only expected to grow by an average of 0.6 percent. In the previous month house prices had risen by 1.7 percent.
In the corona crisis, many people have decided to leave the centers of larger cities like New York and buy houses in the surrounding areas. In addition, mortgage rates, which fell significantly during the crisis, are supporting the housing market. The corona pandemic has therefore supported rather than burdened price developments on the American home market. In October house prices were 10.2 percent higher than in the previous year, according to FHFA data.
The FHFA is the regulator for mortgage financiers Fannie Mae and Freddie Mac, nationalized during the financial crisis. The index calculation uses the sales prices of houses whose mortgages have been bought or guaranteed by the agencies.
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