The Federal Housing Finance Agency (FHFA) reported on Tuesday that house prices in the United States saw a slight increase of 0.1% in February compared to the previous month, based on seasonally adjusted data from its monthly House Price Index (HPI).

On an annual basis, the HPI recorded a 3.9% increase compared to February of the previous year, indicating steady growth in housing values across the country despite broader economic challenges and regional disparities.

Among the nine U.S. census divisions, the Mid-Atlantic division—which includes New York, New Jersey, and Pennsylvania—stood out with the highest annual price increase of 7%, marking a significant regional surge in property values. This suggests strong demand or limited supply in that part of the country, pushing prices upward more rapidly than in other areas.

Conversely, the Pacific division, covering states such as California, Oregon, and Washington, experienced the smallest year-over-year growth in home prices at just 0.9%, signaling a plateau in that region’s market. This could reflect market cooling or stabilization following several years of significant price gains in the area.

The FHFA HPI is a key indicator of U.S. residential real estate trends, drawing from a broad base of data sourced from mortgages acquired by Fannie Mae and Freddie Mac. It is widely watched by policymakers, economists, and real estate professionals for signals on market health and housing affordability.

Overall, the February data highlights continued, but regionally uneven, growth in U.S. housing prices, with the Mid-Atlantic showing outsized momentum while the Pacific region slows. The figures come at a time when interest rates, supply chain constraints, and inflation continue to impact the broader economic landscape.