Federal Housing Finance Agency News Release: Absolutely Useless Information
When is up really down? A second monthly increase in the House Price Index; smaller than the previous month’s adjustment in the opposite direction. This leaves me scratching my head.
Palm Coast, FL – July 21, 2011 – I’m skeptical of most data. I was weaned in the technology industry which spawned the phrase "garbage in – garbage out." I run across errors on a daily basis as I pour over MLS data and the county’s and city’s websites. But people are fascinated with numbers. They seem to be so precise. Sorry to say, they aren’t. Even worse, when manipulated by someone with an agenda, they can be made misleading.
I offer you today’s press release from the Federal Housing Finance Agency. It touts:
FHFA House Price Index Rises 0.4 Percent in May; Second Consecutive Monthly IncreaseWashington, DC – U.S. house prices rose 0.4 percent on a seasonally adjusted basis from April to May, according to the Federal Housing Finance Agency’s monthly House Price Index.
But here’s the catch. The news release goes on to state:
The previously reported 0.8 percent increase in April was revised to a 0.2 percent increase.
The April report originally indicated a 0.8% increase in house prices. However, that number was later revised (corrected) to a 0.2% index. June’s 0.4% increase is less than April’s revision in the opposite direction. Talk about lipstick on a pig. This news release (reproduced below) is pure hogwash.
FHFA House Price Index Rises 0.4 Percent in May;
Second Consecutive Monthly Increase
Washington, DC – U.S. house prices rose 0.4 percent on a seasonally adjusted basis from April to May, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.8 percent increase in April was revised to a 0.2 percent increase. For the 12 months ending in May, U.S. prices fell 6.3 percent. The U.S. index is 19.6 percent below its April 2007 peak and roughly the same as the January 2004 index level.
The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally adjusted monthly price changes from April to May ranged from -1.0 percent in the West South Central Division to +2.0 percent in the Mountain Division.
Monthly index values and appreciation rate estimates for recent periods are provided in the table and graphs on the following pages. Click here for complete historical data.
For detailed information concerning the monthly HPI, please see the HPI Frequently Asked Questions (FAQ). The next release will be on August 24, 2011 and will include monthly HPI data for June as well as for the second quarter of 2011. HPI release dates for 2012 are now available.
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks.
These government-sponsored enterprises provide more than $5.7 trillion in funding for the U.S. mortgage markets
and financial institutions.
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