June FHFA Home-Price Index Posts Larger Than Expected Decline

BY MT Newswires | AGENCY | 08/26/25 09:00 AM EDT

09:00 AM EDT, 08/26/2025 (MT Newswires) -- The FHFA's measure of home prices fell by 0.2% in June after an upwardly revised 0.1% decrease in the previous month, below the 0.1% decrease expected in a survey compiled by Bloomberg as of 7:30 am ET.

Prices were up 2.6% from a year earlier in June.

Home prices in Q2 were unchanged from Q1 but were up 2.9% from the same quarter a year ago. Over that 12-month period, home prices rose in 46 states, led by New York, Connecticut and New Jersey, and fell in four states and Washington, DC, which posted the largest decline.

The monthly home price index report from the Federal Housing Finance Agency measures single-family home prices across the US with a two-month lag, broken down by region. The FHFA reports percentage gains both from the previous month and a year earlier.

Higher home prices are inflationary and a negative for bonds. The outcome for housing-related stocks is mixed, as higher prices suggest strong demand, but prices that are accelerating too fast can also deter potential buyers.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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