US FHFA-backed single-family home prices rise 0.3% in May 2026
Annual growth accelerated to 2.2% from 2.0% in April as scarce starter-home supply supported prices, even as higher mortgage rates added to affordability pressures.
US single-family home prices backed by Fannie Mae and Freddie Mac rose 0.3% in May 2026 after a 0.1% decline in April, while annual growth accelerated to 2.2% from 2.0%. The rebound came as a shortage of existing homes for sale, especially entry-level properties for first-time buyers, continued to support prices. Regional performance remained uneven, with the East South Central and Mountain divisions posting the strongest monthly gains, while the Pacific and East North Central divisions declined. The Pacific was also the only census division to show an annual drop, down 0.3% from a year earlier. Rising mortgage rates are adding to affordability strains, with Freddie Mac data showing the average 30-year fixed-rate mortgage at 6.58% last week, an 11-month high, after climbing 60 basis points since late February.
- seasonally adjusted: Data modified to smooth out recurring seasonal patterns and make month-to-month comparisons clearer.
- 30-year fixed-rate mortgage: A home loan with an interest rate that does not change over a 30-year repayment period.
- basis points: A unit equal to one-hundredth of a percentage point, commonly used to describe rate changes.