Freddie Mac reported that growth in home values rose by an annualized rate of 5.1% nationwide in the first quarter of this year. The GSE reported this in its quarterly Conventional Mortgage Home Price Index  (CMHPI) released this morning. The annualized rate is down from a revised 5.2% for the last quarter of 2002. There was a significant upward revision for the fourth quarter values suggesting the housing market in that quarter was stronger than estimated. The revisions reflect delays between origination and funding by Freddie or Fannie Mae during a period of strong home-value appreciation.

Freddie’s chief economist Frank Nothaft said that the rise in home values is still adding to homeowner equity across the nation. He added that the average single-family home has increased in value in each state, both in the last quarter as well as year-over-year. However, offsetting the moderate rise in home values are the historically low in mortgage rates, said Nothaft.          

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