How different are the CMHPI and FHFAs HPI?
For most purposes, the differences are immaterial. The Federal Housing Finance Agency (FHFA) is Freddie Mac and Fannie Mae’s safety and soundness regulator. In 1996 the FHFA began publishing a data series referred to as the House Price Index (HPI). The FHFA uses the same joint database of Freddie Mac and Fannie Mae repeat transactions as a starting point and employs essentially the same statistical method used to calculate the CMHPI. As a result, differences between the CMHPI and FHFA’s HPI are extremely small relative to the differences between either index and the various other house price indices that are publically available.
