Housing Price Index in United States

A broad-based index closed operations with mortgages granted by Fannie Mae and Freddy Mac, two mortgage firms that backed the US government. This index covers more geographic areas that the Case-Shiller, but does not include the so-called jumbo loans, which exceed the limits imposed by OFHEO, nor the subprime (subprime).

The OFHEO index calculation is based on the Weighted-Repeat Sales or WRS (Repeated Sales Weighted) methodology proposed by Case and Shiller in 1989. It measures the average price change in sales or refinanciciones repeated, the same physical units in two different times, by reviewing the mortgages on those granted by Fanny Mae and Freddie Mac since 1975. the new mortgages are used to identify repeated transactions.

It serves as an accurate indicator of trends in housing prices in the US and to estimate changes in mortgage defaults and bailouts, and housing affordability in different geographical areas.

The index is designed to capture the value of houses.