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The House Price Index (HPI) is a broad measure of the movement of single-family house prices in the United States. It serves as a timely indicator of house price trends and housing affordability at various geographic levels. The index is often used by economists to gauge the health of the real estate market and its potential impact on consumer spending and inflation. Significant changes in the HPI can influence central bank decisions regarding interest rates.
The index is typically calculated using a weighted, repeat-sales statistical technique. It analyzes price changes for the same properties over time based on data from mortgages purchased or securitized by Fannie Mae and Freddie Mac.