On May 26 the Federal Housing Finance Agency reported that U.S. house prices rose 1.7% between the first quarter of 2025 and the first quarter of 2026, and 0.5% from the prior quarter. Later monthly prints showed a slight April dip and a 0.3% May rebound, with May still up 2.2% year over year.
Slower appreciation is not a crash. It is a market where equity still exists but does not bail out a bad purchase. For buyers, it means you cannot assume the house will “grow into” an uncomfortable payment. For owners, it means insurance rebuild cost and market value are still diverging — replacement cost has been rising even where sale prices are only inching up.
If you have not reviewed dwelling limits in two years, the May data is a reason to do it. A 2% price gain does not mean your rebuild cost went up 2%.
Sources: FHFA House Price Index releases (May 26, June 30, and July 28, 2026).