when prices fall the opposite tends to happen consumer confidence is eroded and the companies profiting from the demand for real estate lay off staff this can sometimes trigger an economic recession 
the house price index hpi vs the s p corelogic case shiller home price indexesthe hpi is one of many trackers of home prices some of the most well known alternatives are the s p corelogic case shiller home price indexes these indexes utilize different data and measuring techniques and therefore produce varying results for example the hpi weighs all homes equally while the s p corelogic case shiller indexes are value weighted 4while the case shiller indexes only use purchase prices the all transactions hpi includes refinancing appraisals as well the hpi also provides wider coverage the u s corelogic s p case shiller index rose by 1 2 between march 2024 and april 2024 it increased by 6 3 on an annual basis between april 2023 and april 2024 45fannie mae and freddie macas noted above the hpi measures average price changes for homes that are sold or refinanced by looking at mortgages purchased or secured by fannie mae or freddie mac that means loans and mortgages from other sources such as the united states department of veterans affairs and the federal housing administration fha do not feature in its data 6fannie mae is a government sponsored enterprise gse that is listed on the public market yet operates under a congressional charter the company s goal is to keep mortgage markets liquid it does this by purchasing and guaranteeing mortgages from the actual lenders such as credit unions and local and national banks fannie mae cannot originate loans directly 7the fnma expands the liquidity of mortgage markets and facilitates homeownership for low moderate and middle income americans by creating a secondary market fannie mae was created in 1938 during the great depression as part of the new deal 8like fannie mae freddie mac or the fhlmc is also a gse it purchases guarantees and securitizes mortgages to form mortgage backed securities mbs it then issues liquid mbs that generally carry a credit rating close to that of u s treasuries 91011given its connection with the u s government freddie mac can borrow money at interest rates that are generally lower than those available to other financial institutions 