The average price of single-family homes with mortgages backed by Fannie Mae and Freddie Mac rose by 0.1% in February 2025, according to the Federal Housing Finance Agency (FHFA) House Price Index.
US home prices rise less than expected
This modest increase followed an upwardly revised 0.3% gain in January and came in below market expectations, which had forecast another 0.3% rise for the month. The data suggests a continued cooling in the housing market, reflecting higher mortgage rates and affordability constraints that may be weighing on buyer demand.
Regionally, home price trends varied significantly across the nine US census divisions. Seasonally adjusted monthly price changes ranged from a notable 0.8% decline in the Pacific division—which includes California, Oregon, and Washington—to a strong 1.3% increase in the New England division, covering states such as Massachusetts and Connecticut. These regional disparities highlight the uneven nature of the housing recovery, influenced by local economic conditions, inventory levels, and demographic trends.
Year-over-year figures
On a year-over-year basis, national home prices rose 3.9% in February, marking a slowdown from the revised 5.0% annual increase recorded in January. Despite the deceleration, all regions continued to post annual home price gains. The smallest increase was seen in the Pacific division at just 0.9%, while the Middle Atlantic region—which includes New York, New Jersey, and Pennsylvania—led the country with a robust 7.0% annual rise. These figures suggest that while overall growth is moderating, housing market dynamics remain strong in select areas.
