Understanding the Freddie Mac House Price Index (FMHPI®)
The Freddie Mac House Price Index (FMHPI®) provides a precise, month-by-month view of U.S. home price trends by tracking repeat sales of the same properties over time—making it more accurate than simple average sale price metrics. Updated through April 2025 and released on May 30, this index is a trusted resource for understanding market shifts in metros like Austin, where price movements reflect both local dynamics and broader economic conditions. Whether you're buying, selling, or analyzing housing trends, the FMHPI® offers critical insights to help you make informed decisions. Explore our latest analysis below and download the full report for a detailed breakdown of Austin’s real estate market performance.
Understanding the Freddie Mac House Price Index (FMHPI®) and Its Impact on the Austin Housing Market
The Freddie Mac House Price Index (FMHPI®) is one of the most widely respected tools used to track residential real estate price trends across the United States. Released monthly, this index measures changes in single-family home values at the national, state, and metro level. The data is derived from a comprehensive analysis of conventional, conforming mortgage transactions purchased or securitized by Freddie Mac, offering a standardized view of home price movement across different housing markets.
Unlike local MLS data, which may include off-market sales, fluctuations in listing practices, or non-standard financing, the FMHPI offers a consistent and comparable baseline for evaluating home price performance over time. This makes it especially valuable for economists, real estate professionals, investors, and policymakers seeking to understand macro trends, gauge market stability, or project housing affordability. The index presents several key metrics: appreciation from fixed anchor dates (like January 2020 or April 2022), current month-over-month changes, and year-over-year differences.
In its most recent update released on May 30, 2025, the FMHPI showed that the Austin-Round Rock-Georgetown metro area experienced the sharpest home price decline from peak among major U.S. metros. Austin prices are down 14.4% from their high in May 2022, far exceeding the national metro average of -0.9%. This steep correction follows a dramatic run-up in values during the pandemic years, when Austin became a magnet for remote workers and tech professionals seeking lifestyle and economic advantages.
While the FMHPI shows that many U.S. cities are either holding steady or seeing renewed growth, Austin stands out for how quickly and significantly its market has adjusted. However, this data doesn't signal a market collapse—it indicates rebalancing. As prices cool and inventory levels adjust, many industry watchers believe the market may be entering a more sustainable phase, especially as interest rates stabilize and affordability slowly improves.
FAQ: Freddie Mac House Price Index and Austin’s Market
1. What exactly does the Freddie Mac House Price Index measure?
The FMHPI measures home price appreciation and depreciation using data from Freddie Mac’s conventional conforming mortgage portfolio. It tracks price changes over time in a standardized way, offering month-over-month, year-over-year, and from-peak performance statistics. This makes it a reliable benchmark for understanding how home values are moving in specific geographic regions.
2. Why is Austin’s housing market showing the biggest price drop in the index?
Austin experienced one of the fastest home price run-ups during the pandemic, driven by population inflow, low interest rates, and tech sector expansion. But as rates rose and affordability weakened, demand cooled sharply. This led to a 14.4% decline from the May 2022 peak—the largest among the 40 major metros tracked. The correction reflects the market recalibrating after a period of unsustainable growth.
3. How can buyers and sellers use the FMHPI data when making decisions?
Buyers can use the FMHPI to assess whether prices are trending up or down, helping to time purchases or negotiate more effectively. Sellers can evaluate how their local market is performing relative to national trends and adjust pricing strategies accordingly. Because the FMHPI is updated monthly, it’s also a valuable tool for tracking shifts in market momentum, especially in volatile periods like 2024–2025.
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