Home cost appreciation stayed suppressed in early 2026, according to the latest information from both FHFA and S&P Cotality Case-Shiller. The 2 reports show costs still edging higher nationally, but with momentum slowing further as cost restraints and elevated home loan rates continue to weigh on the market.
FHFA’s seasonally changed House Rate Index was unchanged in February from the prior month, following an upwardly modified 0.2% gain in January. On an annual basis, prices were up 1.7% versus February 2025, slightly listed below the rate seen in previous months and constant with a cooling appreciation pattern.
Regional FHFA information showed continued divergence throughout the country. Regular monthly price changes varied from -1.1% in the Mountain division to +0.6% in the South Atlantic division. Over the previous year, gratitude ranged from -0.7% in the Mountain region to +4.2% in the Middle Atlantic, highlighting a growing split between softer Western markets and firmer Northeastern areas.
The S&P Cotality Case-Shiller U.S. National Home Cost Index posted a 0.7% year-over-year gain in February, down from 0.8% previously and marking another step lower in yearly appreciation. The 10-City Composite rose 1.5%, while the 20-City Composite increased 0.9%, both slowing from January readings.
Case-Shiller data also suggest the housing downturn has actually broadened geographically. More than half of the 20 tracked metro locations posted yearly price declines in February. Denver (-2.2%) taped the weakest efficiency, followed by Tampa (-2.1%), Seattle (-2.0%), Phoenix (-1.8%), and Dallas (-1.7%). Los Angeles (-0.8%) and Washington (-0.1%) also moved into unfavorable area.
Meanwhile, Midwest and Northeast metros continued to lead gains. Chicago posted the greatest annual increase at 5.0%, followed by New york city (4.7%) and Cleveland (4.2%). The relentless strength in these markets contrasts dramatically with weakness across portions of the Sun Belt and West.
Inflation continued to outpace home price growth for the ninth consecutive month, implying real home values decreased again in February. While modest seasonal gains showed up in some monthly data, both reports suggest nationwide home costs are largely flat in genuine terms as the market gets used to higher borrowing expenses and slower demand.
FHFA Home Rate Index
- February Mother (SA): 0.0%
- January MoM Modified: +0.2%
- YoY: +1.7%
S&P Cotality Case-Shiller Indices
- U.S. National YoY: +0.7%
- 10-City Composite YoY: +1.5%
- 20-City Composite YoY: +0.9%
- National MoM (SA): +0.1%
- 20-City Mother (SA): -0.05%