Mobile, AL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Mobile, AL, 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 in the metropolitan statistical area (MSA) of Mobile, Alabama.

The HPI value for Mobile was 185.6 in 2019Q1, up 1.8% from 182.4 in 2018Q4 and up 5.0% from 176.7 in 2019Q1. The HPI for all MSAs was 192.9 in 2019Q1, down 0.2% from 193.3 in 2018Q4 and up 3.2% from 187.5 in 2019Q1

Home equity is the portion of a home's value that is owned outright by the homeowner rather than being tied up in a mortgage or other loan products. Home prices are constantly changing based on numerous factors such as location, inflation, market conditions, and more; however, home equity can be a relatively stable source of wealth accumulation for homeowners over time if their property values increase at a rate similar to or greater than inflation rates.

In recent years, home prices have increased at a much faster pace than incomes or wages, making it difficult for many would-be buyers to afford a home purchase without resorting to creative financing methods such as adjustable-rate mortgages or interest-only loans products which can be risky if not managed properly. For those who already own their homes outright or have built up significant equity through years of paying down their mortgage balance, they may find themselves sitting on a sizable amount of wealth that can be used for various purposes such as funding retirement costs or taking out a line of credit against the equity to make improvements to their property which could further increase its value down the road