FX.co ★ US House Price Index Continues to Cool in January 2025

The US housing market has taken a more subdued turn as January's House Price Index indicates a further cool-down in growth rates. According to recent data updated on March 25, 2025, the house price index increased by only 0.2% in January, a noticeable decline from the 0.5% rise reported in December 2024.

The month-over-month comparison reveals a slowing trend in house price growth, pointing to a potential softening of the housing market as the year progresses. The index’s current standing reflects the smallest increase in the past few months, suggesting that the rapid escalation of home prices seen in 2024 may be tapering off.

Analysts attribute this deceleration to several factors, including rising mortgage rates and increasing inventory levels, which may provide more options for buyers and potentially stabilize price jumps. As the housing market continues to adjust to these conditions, stakeholders remain keenly focused on upcoming data releases which could further illuminate the path of the US real estate sector in 2025.