Houma-Thibodaux, LA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Houma-Thibodaux, LA, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The index covers single-family homes and condominiums.

As of the fourth quarter of 2019, the HPI for Houma-Thibodaux was 176.8, up 5.6% from a year earlier. Home prices in the area have been rising steadily since bottoming out in early 2012.

The HPI is based on data from Fannie Mae and Freddie Mac's mortgage portfolios and includes all home purchase loans and refinancings on one-to-four unit properties regardless of loan purpose. The HPI covers approximately 85 percent of U.S. housing transactions and is designed to be a reliable measure of house price trends at the national level as well as for 20 metropolitan areas, including Houma-Thibodaux.

Home equity is the portion of a homeowner's property that is owned outright, free and clear of any liens or mortgages. In other words, it's the market value of your home minus any outstanding loan balances.

As home prices have risen in recent years, so has home equity levels across the country. As of Q4 2019, homeowners with a mortgage had an average equity stake of 40%, up from 36% just two years earlier. In Houma-Thibodaux specifically, homeowners had an average equity stake of 43%. This means that on average, homeowners in Houma-Thibodaux have $43 worth of ownership stake in their homes for every $100 worth of market value – one of the highest rates in the country!

There are several reasons why home equity levels are important to monitor: first and foremost, they can provide insight into whether or not homeowners are "underwater" on their mortgages (i.e., owe more than their home is currently worth). Secondly, high levels of home equity can give borrowers access to additional funds through HELOCs or cash-out refinances; conversely, low levels may limit these options or make them more expensive due to higher loan-to-value ratios (LTVs). Finally, rising home equity can be a sign that house prices are appreciating – which may be good news for sellers but could also signal potential affordability challenges down the road for buyers who need to finance a purchase with a mortgage loan