December FHFA Home-Price Index Posts Smaller-Than-Expected Gain

BY MT Newswires | AGENCY | 02/24/26 09:00 AM EST

09:00 AM EST, 02/24/2026 (MT Newswires) -- The FHFA's measure of home prices rose by 0.1% in December after an upwardly revised 0.7% increase in the previous month, below a 0.3% gain expected in a survey compiled by Bloomberg.

Prices rose in six of the nine regions, were down in two and unchanged in one region.

Overall prices were up 1.8% from a year earlier in December.

Home prices rose by 0.8% in Q4 from the previous quarter, up from 0.3% in Q3, and were up 1.8% compared with Q4 2024, a slowdown from a 2.4% year-over-year gain in Q3.

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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