Key Facts
• On December 30, the U.S. Federal Housing Finance Agency (FHFA) released October home price index data.
• The seasonally adjusted index rose 1.7% year-on-year, the smallest increase since March 2012.
• September’s year-on-year increase was revised upward to 1.8%.
• By region, the Midwest and South saw a 0.7% year-on-year decline.
• The Mid-Atlantic region experienced a 5.3% year-on-year increase.
• The October index rose 0.4% month-on-month.
• September’s month-on-month change was revised downward to a 0.1% decline.
Summary
The FHFA’s October home price index indicates a modest 1.7% year-on-year increase, marking the slowest growth in over 13 years. This suggests improving housing affordability after a prolonged market slump. Regional disparities remain notable, with the Midwest and South experiencing slight declines, while the Mid-Atlantic region shows strong gains. Monthly data revisions highlight ongoing market adjustments. Overall, the data reflects a cautiously recovering U.S. housing market as of late 2025.
