Housing Price Index (HPI) n.s.a. m/m reflects a nominal percentage change in average residential property prices in the reported month compared to the previous month. Information on residential property transactions is collected from state land registries and statistics from the largest Norwegian mortgage lenders.
Economists analyze the indicator to assess the housing market activity. It also serves as an analytical tool for measuring changes in mortgage rates, evaluating availability of houses and assessing the general inflation in the country. The rise in housing prices is seen as a favorable factor for the country's economy, since it indicates national currency inflation growth. Therefore, growing readings can be seen as positive for the NOK quotes.