OFHEO Price Index Sets 25-Year Record

A jump in housing prices in the second quarter sent the annual rate of appreciation up to 13.4%, the largest increase in over 25 years, according to the Office of Federal Housing Enterprise Oversight.OFHEO reported that prices rose 3.2% in the second quarter, up from 2.55% in the previous quarter. "There is no evidence here of prices' topping out," said OFHEO chief economist Patrick Lawler. "On the contrary, house price inflation continues to accelerate, as some areas that have experienced relatively slow appreciation are picking up steam." The OFHEO house price index for the second quarter shows that the annual rate of house price appreciation exceeds 11% in 25 states, with Nevada and Arizona topping the list at 28.1% and 27.8%, respectively. The index is based on repeat sales and refinancings of single-family properties that are financed with conforming loans purchased by Fannie Mae and Freddie Mac. OFHEO can be found online at http://www.ofheo.gov.