U.S. house prices rose 1.6 percent in the fourth quarter of 2017 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 6.7 percent from the fourth quarter of 2016 to the fourth quarter of 2017. FHFA's seasonally adjusted monthly index for December was up 0.3 percent from November.

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.

"Home price appreciation in the fourth quarter showed absolutely no letup throughout the U.S.," said Dr. Andrew Leventis, Deputy Chief Economist. "As we begin to evaluate home prices in the first quarter, we will monitor whether new headwinds - higher mortgage rates and changes in tax laws - will lead to any moderation in the rate of house price growth."