US House Prices Rise Less Than Expected in December: FHFA

U.S. single-family home prices increased 0.1% month-over-month in December 2025, slowing sharply from an upwardly revised 0.7% gain in November and coming in below market expectations of 0.3%, according to data from the Federal Housing Finance Agency (FHFA).

The figures reflect price changes for homes financed by mortgages backed by Fannie Mae and Freddie Mac.

On a quarterly basis, house prices rose 0.8% in the fourth quarter compared with the previous quarter. However, the pace of annual appreciation remained modest, with home values up 1.8% year-over-year between Q4 2024 and Q4 2025.

Price growth was geographically mixed. Home values increased in 41 states, with North Dakota recording the strongest annual appreciation at 6.4%. Meanwhile, prices declined in nine states and the District of Columbia. Florida posted the largest drop, with home prices falling 2.7%.

The December data point to a cooling housing market at year-end, as elevated borrowing costs and affordability pressures continue to weigh on demand, even as most states maintain modest price gains.