house price index (HPI)

An index that measures the price of residential housing (specifically single-family properties) which is published quarterly by the Federal Housing Finance Agency (FHFA). It uses data from Fanny Mae and Freddie Mac to create the index, and is used to indicate prevailing trends in house prices, as well as an analytical tool to estimate changes to housing affordability and foreclosure rates. It is measured by averaging price changes in house purchase prices including mortgage financing and refinancing appraisals.